US company ExxonMobil plans to become a leading lithium producer

US oil and gas giant ExxonMobil plans to begin lithium production in Arkansas in 2027. The company made this move in response to growing demand for the metal, which is used in batteries for electric vehicles. Its goal is to become a leading producer, according to the company’s announcement today.

Major oil companies are under pressure to do more to address climate change. While Shell and BP are focusing on renewable energy sources such as wind and solar power, Exxon is investing in areas such as emissions reductions, with a focus on carbon capture, as well as hydrogen and biofuels.

Exxon bought 120.000 acres (about 485 square kilometres) in southern Arkansas earlier this year, in a lithium-rich formation named after the nearby town of Smackover. Lithium production is expected to begin in 2027, and the company aims to supply enough lithium each year by 2030 for one million electric vehicles. The company added that it is in talks with potential customers, including electric vehicle and battery manufacturers.

“Lithium is essential to the energy transition, and ExxonMobil is playing a leading role in the shift to electrification,” said Dan Ammann, president of the Low Carbon Solutions division.

Exxon will use drilling techniques employed in oil and gas extraction to access lithium-rich brine reserves located at a depth of 10.000 feet (3048 metres). The company said the lithium will be separated from the brine and converted on site into battery-grade material.

Demand for lithium batteries in the US is expected to increase sixfold by 2030, driven by the shift to electric vehicles, according to a February report by the Li-Bridge group. The group tracks the battery industry and is supported by the Department of Energy. The United States is currently heavily dependent on lithium imports from Argentina and Chile, despite having some of the world’s largest deposits of the metal, the US Geological Survey (USGS) said. The United States currently has only one commercial lithium production facility, in the state of Nevada.

The lithium battery was invented in the 1970s by one of Exxon’s researchers. The oil giant ultimately did not pursue the technology further, news website CNBC noted.