Exxon To Begin Lithium Production for EVs in Arkansas
Exxon Mobil announced plans to become a leading producer of lithium, a vital component of electric vehicle batteries. The company said it has begun work on the first phase of operations in southwest Arkansas, an area believed to have considerable lithium reserves, with a projected start date of 2027.
The company stated that it expects to produce enough lithium to meet the production needs of more than one million electric vehicles per year by 2030; it also stated that conversations with battery and EV manufacturers are ongoing. The product will be known as Mobil Lithium.
“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,” said Dan Ammann, president of ExxonMobil Low Carbon Solutions.
In May, Exxon reportedly purchased drilling rights on 120K acres in the Smackover formation of southern Arkansas for more than $100 million.
In July, The Wall Street Journal reported Exxon planned to build a lithium processing plant in Arkansas that would be one of the world’s largest, with a capacity to produce 75K to 100K metric tons per year of lithium.
Exxon said that after accessing lithium-rich saltwater from deep underground reserves using standard oil and gas drilling methods, it will use direct lithium extraction technology to separate lithium from the saltwater; the lithium will be transformed onsite to battery-grade material.
Exxon is not the only oil company venturing into the lithium market. BP, Shell and TotalEnergies are also competing for market share.
