In a groundbreaking shift from black gold to green energy, Exxon Mobil, the titan of the oil industry, is gearing up for a massive venture into the electric vehicle (EV) revolution.
By 2027, Exxon plans to kickstart lithium production in the U.S., aiming to fuel millions of electric vehicles with the crucial component for EV batteries.
This dramatic pivot signals a seismic shift in energy dynamics, positioning Exxon as a potential leader in the EV battery metal supply chain.
As governments in the U.S. and Europe ramp up efforts to promote electric vehicles and cut down fossil fuel consumption, Exxon is seizing the opportunity to dive into the electrification sector.
With plans to extract lithium from briny waters in Arkansas, an area rich in lithium deposits, Exxon isn’t just eyeing local markets.
“Lithium really is a global opportunity,” says Dan Ammann, president of Exxon’s Low Carbon business unit, hinting at a vision that stretches far beyond the U.S. borders.
Exxon’s ambitious plan aims to supply lithium for over 1 million EVs annually, eyeing a dominant position in the lithium market by 2030.
Financial analysts estimate this goal would require a hefty $2 billion investment. However, the potential cash flow from producing 50,000 tonnes of lithium could rake in a staggering $800 million.
Despite not disclosing the specifics of its investment or profitability timelines, Exxon’s strategy involves using conventional oil and gas drilling methods to tap into deep reservoirs for lithium-rich saltwater.
This innovative approach, coupled with direct lithium extraction technology, could revolutionize lithium production.
Partnering with Tetra Technologies, Exxon is set to produce the metal under the brand name “Mobil Lithium.”
This collaboration marks a significant step in Exxon’s journey to become a key player in the EV market.
Interestingly, the company’s foray into lithium isn’t its first dance with the metal.
Exxon had a pivotal role in inventing the rechargeable lithium-ion battery in the 1970s but later stepped back from the technology.
While European rivals like BP and Shell are investing in EV charging stations, Exxon has no plans to follow suit.
Instead, the company is laser-focused on supplying lithium for EV batteries, consumer electronics, and energy storage systems.
This strategy aligns with the growing need for reliable energy storage solutions that can complement intermittent solar and wind power.
The potential of the EV market is enormous, with only 1% of the 280 million vehicles in the U.S. being electric.
“There is still 99% to go, which suggests it is a very, very big opportunity,” Ammann optimistically notes. As Exxon Mobil pivots from its traditional oil roots to spearhead a lithium revolution, the world watches with bated breath to see if this oil giant can electrify its future and transform the EV landscape forever.
