ExxonMobil is venturing into lithium production, aiming to become a primary supplier for electric vehicles by 2030. They’re initiating the drilling of their first lithium well in Arkansas, focusing on providing Mobil™ Lithium as a key component for EV batteries.
In early 2023, ExxonMobil acquired the rights to 120,000 gross acres of the Smackover formation in southern Arkansas – considered one of the most prolific lithium resources of its type in North America.
The company’s innovative approach involves using traditional drilling methods to extract lithium-rich saltwater, followed by a technology called direct lithium extraction (DLE) to separate the lithium from the saltwater. The lithium will then be converted onsite to battery-grade material. The remaining saltwater will be re-injected into the underground reservoirs. The DLE process produces fewer carbon emissions than hard rock mining and requires significantly less land. The goal is to begin production by 2027, positioning ExxonMobil at the forefront of the energy transition and contributing to the reduction of emissions in transportation.
Arkansas, known for its history in oil and natural gas, now stands to be a significant player in the emerging lithium industry. This move not only aims to secure a substantial supply of lithium in North America but also emphasizes a commitment to domestic sourcing for energy security while minimizing environmental impact.
The company’s vision extends to expanding lithium production globally and supplying enough lithium by 2030 to meet the demands of more than a million electric vehicles annually. They’re actively engaging with potential customers, including electric vehicle and battery manufacturers, to solidify their role as a leading supplier in the electric vehicle market.
“South Arkansas is our state’s all-around energy capital, producing oil, natural gas, and now thanks to investments like ExxonMobil’s and their combination of skills and scale, lithium,” said Arkansas Governor Sarah Huckabee Sanders. “My administration supports an all-of-the-above energy strategy that guarantees good, high-paying jobs for Arkansans – and we’ll continue to cut taxes and slash red tape to make that happen.”
“Lithium is essential to the energy transition, and ExxonMobil has a leading role to play in paving the way for electrification,” said Dan Ammann, president of ExxonMobil Low Carbon Solutions. “This landmark project applies decades of ExxonMobil expertise to unlock vast supplies of North American lithium with far fewer environmental impacts than traditional mining operations.”