Exxon to mine lithium in Arkansas for EVs

November 25, 2023

Exxon Mobil is venturing into the EV battery lithium supply market with a new drilling site and processing plant in southwest Arkansas. The company plans to start lithium production from its 120,000-acre deposit site in Smackover, Arkansas, in 2027. The site, acquired earlier this year, is expected to supply lithium to more than one million EVs per year by 2030 under the new brand, Mobil Lithium.

Exxon Mobil, traditionally known for its oil production, will use conventional oil and gas drilling methods to extract lithium-rich saltwater from the Smackover site’s reservoirs. The extracted lithium will then be processed onsite into battery-grade material. “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.

The Smackover land, known for its rich lithium reserves, was acquired by Exxon Mobil in early 2023. The area contains as much as 445 parts per million lithium, according to state reports. Other companies, including Standard Lithium, have also established production projects in the area.

The Arkansas lithium production will contribute to the U.S.’s currently limited domestic capacity for the critical mineral. Currently, the U.S. only has one active lithium project in Nevada, but companies like Tesla and GM are investing to increase production capacity.

Exxon Mobil has previously invested in renewable energy, including biofuels. In 2021, the company partnered with Porsche to test biofuels and took a 49.9% stake in Norwegian biofuel company Biojet AS in January 2022. However, Exxon Mobil recently shifted its focus from algae-based biofuel to other renewable energy solutions.

Recognizing the potential impact of the shift to EVs on their core business, some oil companies are exploring lithium extraction for EV batteries. In July, Chevron CEO Mike Wirth told Bloomberg that the company is considering opportunities for lithium production. Shell, while not announcing any lithium production plans this year, has invested heavily in wind energy.