Exxon Mobil Plans to Become Top Lithium Producer in Arkansas
Exxon Mobil, one of the world's largest oil and gas companies, is delving into the lithium market in its quest to become a leading producer of the valuable battery metal. The company has revealed its intention to filter lithium from the Smackover brine formation that lies beneath Arkansas, with the goal of generating enough lithium by 2030 to power a million electric vehicle (EV) batteries.
Complex Process Involving Unproven Technology
Exxon's ambitious plan involves utilizing a combination of equipment and technologies, including at least one direct lithium extraction (DLE) technology that has yet to be proven effective. To test the feasibility and effectiveness of various DLE technologies, the company has constructed a pilot plant in Houston. Patrick Howarth, head of Exxon's lithium business, reported that the plant has been producing small quantities of high-quality lithium through these tests.
Partnership to Accelerate Production
To expedite the production process, Exxon is collaborating with Tetra Technologies, with lithium production expected to commence in Arkansas by 2026. Additionally, Exxon owns approximately 120,000 acres independently, from which lithium production is anticipated by 2027. Although Exxon has engaged in preliminary discussions with automakers regarding lithium purchases, no agreements have been reached at this time. The agreement between Exxon and Tetra Technologies to develop around 6,100 acres in Arkansas is in the final stages of a memorandum of understanding.
Exxon Mobil's ambitious push into lithium production underscores the company's commitment to the rapidly growing EV market. With the rising demand for electric vehicles and the crucial role lithium plays in battery production, Exxon's entry into this sector could prove to be a lucrative venture. However, the success of Exxon's lithium filtration technology selection and subsequent production remains to be seen.
Analyst comment
Positive news. Exxon Mobil’s plan to filter lithium from Arkansas could position them as a top producer of battery metal. The decision on filtration technology will be made by year-end. Production is expected to begin by 2026, with potential partnerships with automakers for lithium supply.
