ExxonMobil drilling lithium in Arkansas

Summary:

ExxonMobil is aiming to produce lithium from its Arkansas project by 2027, in a first phase operation.

Companies:

• ExxonMobil Corporation (NYSE: XOM)

What's Happening:

• ExxonMobil aims to become a prominent lithium supplier for electric vehicles (EVs) by 2030.

• Branded as Mobil™ Lithium

• Previously, ExxonMobil acquired rights to 120,000 gross acres in the Smackover Formation, a prolific lithium brine area.

Numbers + Facts:

• ExxonMobil targets first lithium production in 2027.

• The company plans to produce enough lithium by 2030 for over a million EVs annually.

• Lithium demand is expected to quadruple by 2030, and ExxonMobil's domestic sourcing aims to contribute to energy security and reduce environmental impacts

• Conventional oil and gas drilling methods will be used to access lithium-rich saltwater from reservoirs about 10,000 feet underground, ExxonMobil will then use direct lithium extraction (DLE) technology to separate lithium from the saltwater.

Looking Ahead:

• There is an ongoing land rush in the Smackover Formation, which has attracted large companies, like ExxonMobil, that are trying to produce using DLE

• The use of direct lithium extraction technology is highlighted for its lower carbon emissions and reduced environmental footprint

• However, DLE has yet to be proven at scale

• We expect DLE to remain the subject of intense investor interest as a potential solution to the world’s lithium demands

Read more: ExxonMobil drilling first lithium well in Arkansas, aims to be a leading supplier for electric vehicles by 2030