Exxon Mobil Aims for Lithium Production in Arkansas by 2026 to Fuel Electric Vehicle Boom

Oil giant Exxon Mobil announces plans to venture into lithium production, aiming to start operations in Arkansas by 2026. The move is part of Exxon’s strategy to tap into the growing demand for lithium, a key component in electric vehicle batteries. The company’s expansion, known as “Project Evergreen,” is set to produce at least 10,000 metric tons of lithium annually, marking a significant step in Exxon’s efforts to diversify its energy portfolio.

Exxon Mobil, the pioneer of lithium-ion battery technology in the 1970s, is gearing up to enter the lithium production sector with an ambitious plan to commence operations in Arkansas by 2026. The move is part of Exxon’s broader strategy to adapt to the rising demand for lithium, a crucial component in electric vehicle (EV) batteries.

The company’s foray into lithium production is expected to kick off with “Project Evergreen,” a partnership with Tetra Technologies, aiming to produce a minimum of 10,000 metric tons of lithium annually in Arkansas by 2026. This initial output is approximately equivalent to the amount required for manufacturing 100,000 EV batteries.

As part of its lithium exploration efforts, Exxon has been drilling wells in Arkansas to study the Smackover Formation, a geological expanse rich in lithium- and bromine-rich brine. The company is also testing direct lithium extraction (DLE) technology, a pivotal component for future commercial operations.

Exxon’s move into lithium production aligns with its efforts to diversify its energy portfolio and capitalize on the burgeoning EV market. The company’s CEO, Darren Woods, expressed optimism about the lithium sector during an investor call in October, citing the opportunity to leverage Exxon’s existing strengths.

While Exxon faces regulatory challenges in Arkansas, primarily related to the absence of a royalty structure for lithium, the company is pressing forward with its lithium endeavors. Exxon shareholder Engine No. 1 has advocated for the deployment of DLE technology, adding momentum to the company’s shift toward cleaner energy solutions.

In addition to the Tetra partnership, Exxon controls over 100,000 acres in Arkansas, acquired from Galvanic Energy, where it plans to initiate lithium production by 2027. The oil giant is poised to play a significant role in the lithium market, extracting the metal as a byproduct of fossil fuel production.

Exxon’s presence in the lithium sector signals a broader trend among oil companies exploring opportunities in cleaner energy sources. The company’s attendance at the Benchmark Minerals conference in Los Angeles, marking its first participation in a major critical minerals event, underscores Exxon’s commitment to navigating the evolving landscape of energy production.

Sources By Agencies