Warren Buffett‘s Berkshire Hathaway Inc has signed an agreement to allow extraction of lithium from its geothermal wells in California, a project that could offer U.S. carmakers and battery producers a secure supply of the metal, the Financial Times reported on Sunday.
The venture has been in talks to supply Tesla (NASDAQ:TSLA) Inc with lithium, a component for batteries to power electric cars, the newspaper reported, citing people familiar with the company.
Berkshire Hathaway’s geothermal wells could produce up to 90,000 tonnes of lithium a year worth $1.5 billion at current prices, the report said, citing a fundraising document.
“We see a lot of interest in getting North American supply as automakers start to get further into electric vehicles,” the FT quoted Eric Besseling, a vice president at BHE Renewables, as saying.
Berkshire Hathaway Energy Co and Tesla did not immediately respond to a request for comment outside normal business hours.
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Berkshire Hathaway Inc Company Profile.
Berkshire Hathaway Inc. is a holding company owning subsidiaries engaged in various business activities. Its segments include Insurance, such as GEICO, Berkshire Hathaway Primary Group, General Re Corporation and Berkshire Hathaway Reinsurance Group; Burlington Northern Santa Fe, LLC, which is engaged in the operation of the railroad system; Berkshire Hathaway Energy, which includes regulated electric and gas utility;
Manufacturing, which includes manufacturers of various products, including industrial, consumer and building products; McLane Company, which is engaged in the wholesale distribution of groceries and non-food items; Service and retailing, which includes providers of various services, including fractional aircraft ownership programs, aviation pilot training and various retailing businesses, and Finance and financial products, which includes manufactured housing and related consumer financing, transportation equipment, manufacturing and leasing, and furniture leasing.