Exxon Mobil Corp. plans to start producing lithium in Arkansas, marking an entry into the availability of a key element of large-scale batteries and the primary time the oil large has invested in a serious non-fossil gasoline extraction venture in current historical past.
Exxon acquired rights to 120,000 acres within the Smackover formation in southern Arkansas and plans to start output of lithium by 2027, the Spring, Texas-based firm mentioned in an announcement Monday. The venture will make Exxon a “leading supplier for electric vehicles by 2030,” it mentioned.
Exxon is certainly one of a number of oil and fuel corporations seeking to broaden into lithium, which might assist present a foothold within the quickly rising marketplace for power storage. The metallic’s use in electrical car batteries would additionally assist mitigate losses from the anticipated discount in use of gasoline and diesel demand over the approaching a long time.
“Lithium is essential to the energy transition, and ExxonMobil has a leading role to play in paving the way for electrification,” Dan Ammann, president of Exxon’s Low Carbon Options division, mentioned within the assertion.
The oil large has held talks with Tesla, Ford, Volkswagen and different automakers this yr because it seeks to construct a enterprise across the metallic, Bloomberg Information reported in July, citing individuals aware of the matter.
Lithium will not be geologically scarce like fellow battery metals cobalt and nickel, however mining high-grade portions at scale is a serious problem. Exxon Chief Government Officer Darren Woods has mentioned producing it from saltwater comparable to brine might be each cheaper and greener than mining, at the moment the most typical manufacturing technique.
Whereas efforts are at an early stage, Exxon believes its experience in drilling and processing liquids can provide the corporate a aggressive benefit in acquiring lithium from underground saltwater deposits. The chance to provide lithium from the Smackover Vary in Arkansas is wanting “more and more promising,” Woods mentioned final month.
Spot lithium costs have tumbled this yr attributable to a slowdown in China and concern over the affordability of electrical automobiles within the US and Europe. Nonetheless, the long-term image appears to be like wholesome. BloombergNEF expects international demand for lithium to develop virtually 5 occasions by the top of the last decade.
Occidental Petroleum Corp. and SLB, the world’s largest oil-services supplier, even have mentioned they’re exploring brine-based lithium manufacturing.