ExxonMobil revealed plans to branch out into the electric vehicle (EV) market on Monday, announcing aims to begin lithium production in Arkansas by 2026. The oil giant is set to partner with Tetra Technologies as part of “Project Evergreen” in order to initiate production of at least 10,000 metric tons of lithium annually by 2026. These efforts align with Exxon’s longstanding focus on developing emerging technology, and the company has acquired thousands of lithium-rich acres in Arkansas. Exxon, in addition to other oil companies, has been looking for ways to reduce carbon emissions, and lithium production presents an appealing new product opportunity with minimal additional costs.
In line with its strategy to begin lithium production by 2027, Exxon has purchased more than 100,000 acres in Arkansas from Galvanic Energy. These acquisitions illustrate Exxon’s commitment to expanding its lithium operations, a move consistent with the broader trend among oil companies to extract lithium from water sources used during fossil fuel production. Exxon’s further efforts to become a major supplier of lithium also involve consideration for broader expansion beyond Arkansas. However, there are regulatory challenges that Exxon, along with Albemarle and Standard Lithium, face in Arkansas due to the state’s current royalty structure, which may lead to delays. Nonetheless, Exxon has expressed its long-term commitment to developing plans in the state and will be attending the Benchmark Minerals conference in Los Angeles.
Ernest Scheyder’s reporting reflects Exxon’s ambitious expansion into lithium production. However, the company is cautious about publicizing the intricate details of its technology choices, despite intense industry attention on its strategic direction. Exxon’s ability to leverage its drilling and operational expertise could give it an edge in the lithium sector, aiding its transformation from traditional oil production to a modern approach focused on sustainable and versatile energy solutions.
