Everyone wants in on the opportunity around lithium. And now there’s a brand new player getting in on the action: ExxonMobil.
What’s happening:
- Natural gas giant ExxonMobil have revealed their plans to become a top producer of lithium globally by 2030
- ExxonMobil has officially begun work in southwest Arkansas to begin lithium production to power the energy transition in North America
Why it matters:
- The need for lithium production continues to grow amid the energy transition and the critical role of electric vehicles in reaching net zero emissions
- Most of the world’s lithium is produced outside of North America, which ExxonMobil is hoping to change
Going deeper:
- ExxonMobil has publicly stated they are in on going conversations with electric vehicle companies and battery manufacturers to begin entering into lithium supply partnerships
By the numbers:
- ExxonMobil owns 120,000 gross acres of land in the Smackover formation located in southern Arkansas, which is widely considered one of the most prolific lithium deposits located within North America
- The current plan is to access lithium rich saltwater from reservoirs that are approximately 10,000 feet underground before leveraging direct lithium extraction technology to separate the lithium from the saltwater
- Many are predicting lithium demand to grow by 400% inside of this decade, largely due to an increase in demand from electric vehicles, energy storage systems and clean technology
