ExxonMobil, of All Companies, Aims to Become Lithium Leader
Like many, oil companies must adapt to the electric vehicle shift that’s transforming the auto industry and sending global oil demand on a downward trend. In some places, you can even charge your EV at a gas station.
Now, get this: ExxonMobil plans to start producing lithium for EV batteries as it ramps up investment in non-fossil fuel extraction projects.
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The Texas-based company actually wants to become a leading lithium supplier by 2030. Earlier this year, it acquired the rights to 120,000 gross acres of the Smackover formation in southern Arkansas—considered one of the most prolific lithium resources of its type in North America.
“Lithium is essential to the energy transition, and ExxonMobil has a leading role to play in paving the way for electrification,” said Dan Ammann, president of ExxonMobil’s Low Carbon Solutions division, in a statement no one could have foreseen 10 years ago.
“This landmark project applies decades of ExxonMobil expertise to unlock vast supplies of North American lithium with far fewer environmental impacts than traditional mining operations.”
After using conventional oil and gas drilling methods to access lithium-rich saltwater from reservoirs about 10,000 feet underground, ExxonMobil will utilize direct lithium extraction (DLE) technology to separate lithium from the saltwater. The lithium will then be converted onsite to battery-grade material.
ExxonMobil has reportedly had talks with Ford, Tesla and Volkswagen, among other automakers, according to U.S. publication Bloomberg, which expects global demand for lithium to increase almost fivefold by the end of the decade despite a slowdown in 2023.
Ford and Tesla have already signed deals with a pair of Quebec-based lithium producers—Nemaska Lithium and Sayona Quebec, respectively.
And just over a year ago, Manitoba’s Snow Lake Lithium said it planned to start commercial production in 2025 with the capacity to supply lithium for up to 500,000 EVs annually.