ExxonMobil aims to apply its drilling expertise to lithium production as the top US oil major seeks to become a leading supplier of the key component of electric vehicle (EV) batteries by the end of the decade.
Work is already underway in southwest Arkansas, an area known to hold significant deposits of lithium, where ExxonMobil is targeting first output in 2027. Earlier this year, the company snapped up the rights to 120,000 gross acres of the Smackover formation.
"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," said Dan Ammann, president of ExxonMobil Low Carbon Solutions.
Demand for the critical mineral is set to soar in future years as the energy transition gathers pace. Electric vehicles and plug-in hybrids are on track to account for a third of cars and trucks on the road globally in 2050, eroding the market share of gasoline and diesel vehicles, the US Energy Information Administration said last month. Oil producers have expressed an interest in tapping a new technology to accelerate lithium extraction from brine water at lower cost even if it remains unproven at scale.
ExxonMobil will use conventional drilling methods to reach lithium-rich saltwater from reservoirs about 10,000 ft underground. It will then deploy direct lithium extraction (DLE) technology to separate lithium from the saltwater. The lithium will be converted onsite to battery-grade material while the remaining saltwater will be re-injected underground. The technology is seen as more environmentally-friendly than traditional hard-rock mining methods and uses up less land.
Global demand for lithium is expected to quadruple by 2030, and ExxonMobil aims to bolster domestic production given most supplies are currently sourced from outside of North America. By 2030, the company aims to produce enough lithium to supply the needs of more than one million electric vehicles a year. Talks with potential customers, including electric vehicle and battery manufacturers, are underway.
By Stephen Cunningham
