ExxonMobil Corporation has announced a major initiative to become a leading producer of lithium, a key component in electric vehicle (EV) batteries, marking a significant shift in its business strategy towards the burgeoning EV market. The company is commencing its first North American lithium production phase in southwest Arkansas, with the goal of becoming a key supplier for EVs by 2030.
The project, named Mobil Lithium, is based in the Smackover formation of southern Arkansas, covering 120,000 gross acres known for rich lithium deposits. This move represents ExxonMobil’s strategic effort to support domestic manufacturing, contribute to energy security, and align with U.S. climate policy objectives, while also promising to have substantially fewer environmental impacts than traditional mining methods.
Dan Ammann, President of ExxonMobil Low Carbon Solutions, emphasized the strategic importance of this venture: “Lithium is essential to the energy transition, and ExxonMobil is at the forefront of this electrification shift.” This initiative in Arkansas is a significant step in unlocking North America’s vast lithium supplies with minimal environmental footprint.
The extraction process involves conventional drilling methods to access lithium-rich saltwater from deep underground reservoirs. ExxonMobil’s adoption of direct lithium extraction (DLE) technology to separate lithium is a highlight, producing fewer carbon emissions and requiring less land compared to traditional mining.
Southwest Arkansas, traditionally an oil and natural gas hub, is now set to be a key player in the lithium industry. Collaborating with local and state officials, ExxonMobil is poised to scale up lithium production effectively in the region.
By 2027, ExxonMobil aims to start lithium production, with plans to produce enough lithium by 2030 to support the manufacturing of over a million EVs annually. The company is currently in discussions with potential customers, including EV and battery manufacturers, and is exploring global opportunities for growth.
This bold move into lithium production underlines ExxonMobil’s commitment to sustainable and low-carbon solutions. As one of the largest publicly traded international energy and petrochemical companies, ExxonMobil is diversifying its portfolio to meet evolving societal needs. This ambitious project not only reinforces ExxonMobil’s role in the energy transition but also contributes significantly to the growing demand for clean energy technologies.
