Will Exxon Mobil Transition To Support EVs? In Talks With Tesla About Supplying Lithium

Exxon Mobil is in talks with Tesla and other automakers to become a lithium supplier

The Carter Center

For years Elon Musk has been urging entrepreneurs to get into lithium mining. It appears someone was listening, but it's not a start-up. Exxon Mobil, the oil and gas giant and a name synonymous with the fossil fuel industry is reportedly engaged in early-stage discussions with Tesla and other automakers, including Ford and Volkswagen, to become a supplier of lithium.

Lithium is a key component in electric vehicle batteries. Tesla recently broke ground on its own lithium mining operation to address the critical element. Now that a major oil player is getting in the game, it signifies a significant shift in Exxon's strategic outlook as it embraces the inevitable transition towards more sustainable energy sources.

Harnessing Lithium: Exxon's Answer to EV Growth

A report from Bloomberg states that Exxon has been actively exploring the lithium business to diversify beyond fossil fuels. Its recent initiative involves the development of over 6,100 acres of lithium-rich land in Arkansas in partnership with Tetra Technologies Inc. The oil giant's strategic venture into the lithium sector underscores its commitment to securing the assets needed for EV battery production.

This move isn't merely a diversification strategy for Exxon; it presents a timely response to the meteoric rise of the EV sector. The increasing adoption of EVs has amplified the demand for lithium, posing a significant challenge to Exxon's core oil production and refining businesses. In turn, Exxon seeks to secure its position by harnessing a vital resource in this emerging market.

The company's entrance into the lithium market is not just about survival but also about leveraging its industry expertise for new business opportunities. Exxon has been considering extracting lithium from underground saltwater. This method aligns with the company's extensive experience in oil and gas extraction while also promising to be more cost-effective and environmentally friendly.

A Turning Point in the Energy Landscape

While the details of the discussions remain confidential, Exxon's engagement with Tesla and other automotive heavyweights signals a remarkable convergence of interests. By teaming up with major automakers, Exxon is positioning itself as a critical link between traditional and renewable energy sectors. This cooperation could foster a mutually beneficial relationship that bridges the gap between these diverse energy domains, encouraging knowledge sharing and expediting the adoption of sustainable practices.

Though Exxon has yet to announce whether it will independently undertake lithium production or seek partnerships, its ambitious goal of extracting 100,000 tons of lithium annually attests to its commitment to becoming a significant player in the lithium business. The corporation is also reportedly in talks with other lithium market participants, including Albemarle Corp, further emphasizing its intent to become a leading figure in the EV revolution.

Exxon Mobil's potential collaboration with Tesla and other automakers represents more than a strategic pivot; it is an emblematic turning point in the energy landscape, marking an era where traditional oil companies and EV manufacturers might work hand-in-hand to accelerate the transition towards a more sustainable future.

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Tesla Increases Price of Model S; Starts Offering Free Lifetime Supercharging

Not a Tesla App

For the first time in quite a while, Tesla has increased the price of one of its vehicle offerings. The Model S Long Range and the Model S Plaid have both received a hefty price increase. However, not all is bad - as Tesla also added a new benefit for buyers.

Price Increase

The price increase for the Model S is $5,000 - currently only in the United States. This price increase will likely impact other markets, including Canada, in the coming days.

The Model S Long Range now starts at $79,990, while the Model S Plaid now starts at $94,990. The Model S and Model X now have the same starting price. Interestingly, that’s also the same pricing point for the Cybertruck AWD and Cyberbeast Trimotor non-Foundation Series. 

The vehicle configuration does not appear to have changed, so the new pricing is simply an increase rather than the addition or removal of features. Tesla previously cut the price of the Model S and Model X by 15% in 2023, so this could simply be an adjustment to ensure that the vehicle pricing stays in line with inflation and other factors.

Free Lifetime Supercharging

For those on the fence about ordering a Model S, Tesla has brought back Free Lifetime Supercharging when you order a new Model S on or after December 13, 2024. As always, Free Lifetime Supercharging is restricted to the buyer’s Tesla account and to that specific vehicle. It cannot be transferred to another vehicle or another owner after ownership transfer. It’s worth noting, that it also doesn’t exclude the owner from receiving Supercharger idle fees or congestion fees. There is currently no end date for this promotion.

There are currently no changes to the Model X, neither a price increase nor the addition of Lifetime Superchargering. However, when Tesla makes changes to one of their premium vehicles, it usually affects the other one as well. So be on the lookout for potential changes to the Model X offering in the coming days.

We’ve seen Tesla value Lifetime Supercharging at $5,000, so this falls in line with the price increase we’re seeing. It’s possible that Tesla will begin to bring back Lifetime Supercharging as a perk for buying into their more premium Model S and Model X cars, or this could be another temporary promotion to get buyers who are on the fence to go ahead and make their purchase while this promotion lasts.

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Tesla’s Optimus Robot Learns to Walk Without Vision [VIDEO]

Optimus Falls - but catches itself!

Not a Tesla App

Tesla recently showed off a demo of Optimus, its humanoid robot, walking around in moderately challenging terrain—not on a flat surface but on dirt and slopes. These things can be difficult for a humanoid robot, especially during the training cycle.

Daily walks help clear your mind pic.twitter.com/dUsW58trS6

— Tesla Optimus (@Tesla_Optimus) December 9, 2024

A Look Behind the Curtain

Most interestingly, Milan Kovac, VP of Engineering for Optimus, clarified what it takes to get Optimus to this stage. Let’s break down what he said.

Optimus is Blind

Optimus is getting seriously good at walking now - it can keep its balance over uneven ground - even while walking blind. Tesla is currently using just the sensors, all powered by a neural net running on the embedded computer. 

Essentially, Tesla is building Optimus from the ground up, relying on as much additional data as possible while it trains vision. This is similar to how they train FSD on vehicles, using LiDAR rigs to validate the vision system’s accuracy. While Optimus doesn’t have LiDAR, it relies on all those other sensors on board, many of which will likely become simplified as vision takes over as the primary sensor.

Today, Optimus is walking blind, but it’s able to react almost instantly to changes in the terrain underneath it, even if it falls or slips. 

What’s Next?

Next up, Tesla AI will be adding vision to Optimus - helping complete the neural net. Remember, Optimus runs on the same overall AI stack as FSD - in fact, Optimus uses an FSD computer and an offshoot of the FSD stack for vision-based tasks.

Milan mentions they’re planning on adding vision to help the robot plan ahead and improve its walking gait. While the zombie shuffle is iconic and a little bit amusing, getting humanoid robots to walk like humans is actually difficult.

There’s plenty more, too - including better responsiveness to velocity and direction commands and learning to fall and stand back up. Falling while protecting yourself to minimize damage is something natural to humans - but not exactly natural to something like a robot. Training it to do so is essential in keeping the robot, the environment around it, and the people it is interacting with safe.

We’re excited to see what’s coming with Optimus next because it is already getting started in some fashion in Tesla’s factories.

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