ExxonMobil Drilling First Lithium Well in Arkansas, With Goal of Being a Leading Supplier for Electric Vehicles
Exxon Mobil Corporation, a leading player in the energy sector, has recently announced its strategic move towards becoming a dominant producer of lithium, a fundamental element in the manufacturing of electric vehicle (EV) batteries. The company has commenced the initial phase of lithium production in a lithium well in Southwest Arkansas. This particular region is renowned for its substantial lithium reserves, making it an apt choice for Exxon’s new venture. This new product line will be marketed under the brand name “Mobil Lithium”, leveraging the historic and technically advanced partnership that Mobil has fostered with the automotive industry over the years. This strategic move signifies Exxon’s commitment to the EV industry and its readiness to adapt to the shifting dynamics of the energy market.
“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.”
In early 2023, ExxonMobil solidified its commitment to new energy sources by acquiring the rights to 120,000 gross acres of the Smackover formation in southern Arkansas. This particular area is recognized as one of the most prolific lithium resources of its type in North America. The acquisition was a significant step forward in ExxonMobil’s strategic plan, which includes diversifying its portfolio and reducing its carbon footprint. This move also underscores the company’s readiness to contribute extensively to the EV industry, further supporting the growing demand for electric vehicles.
Southwest Arkansas has a rich history as a producer of oil and natural gas, with its geological makeup lending itself well to these industries. The region’s geology is well understood, which is a critical element in the successful extraction and production of lithium. ExxonMobil has been operating in close coordination with local and state officials to ensure the successful scale-up of the emerging lithium industry in Arkansas. This synergy between all stakeholders is expected to lead to increased efficiency and sustainable growth, thus propelling Arkansas into a leading position in the lithium industry. The move by ExxonMobil not only signifies their strategic diversification but is also a testament to the adaptability and resilience of the Southwest Arkansas region.
Benefits of Lithium Production
After utilizing conventional oil and gas drilling methods to access lithium-rich saltwater from reservoirs about 10,000 feet underground, ExxonMobil will employ Direct Lithium Extraction (DLE) technology. This technology is designed to separate lithium from the extracted brine. Subsequently, the lithium will be converted onsite into high-purity, battery-grade material, ready to meet the demand of the burgeoning EV industry. The remaining brine, once the lithium has been extracted, will be responsibly re-injected into the underground reservoirs, thereby minimizing environmental impact. The DLE process is noted for its lower carbon emissions compared to traditional hard rock mining and requires significantly less land, aligning further with ExxonMobil’s commitment to sustainable and responsible extraction practices.
“This project is a win-win-win,” Ammann added. “It’s a perfect example of how ExxonMobil can enhance North American energy security, expand supplies of a critical industrial material, and enable the continued reduction of emissions associated with transportation, which is essential to meeting society’s net-zero goals.”
Lithium plays a crucial role in the creation of lithium-ion batteries, which are widely used in electric vehicles, consumer electronics, energy storage systems, and other clean energy technologies. As we propel towards a more sustainable future, the demand for lithium is projected to quadruple by the year 2030. It’s noteworthy that almost all of the lithium currently produced is sourced from regions outside of North America.
ExxonMobil is taking strides in the expansion of lithium production and the development of low carbon solutions. The company is setting its sights on inaugural lithium production for 2027 while exploring growth opportunities on a global scale. By the time we reach 2030, ExxonMobil’s goal is to produce enough lithium to cater to the manufacturing needs of more than a million electric vehicles each year. In pursuit of this goal, the company is actively engaged in discussions with potential customers, which include manufacturers of electric vehicles and batteries.
