ExxonMobil Drilling First Lithium Well in Arkansas, Aims to Be a Leading Supplier for Electric Vehicles by 2030
November 13 2023 - 8:00AM
Business Wire
- Advanced production approach has potential to unlock vast
supplies of lithium in North America
- Domestic sourcing will contribute to energy security, support
manufacturing and advance U.S. climate policy objectives – with
significantly fewer environmental impacts
- First production targeted for 2027
- Project further demonstrates ExxonMobil’s leadership in energy
transition
Exxon Mobil Corporation (NYSE: XOM) today announced plans to
become a leading producer of lithium, a key component of electric
vehicle (EV) batteries. Work has begun for the company’s first
phase of North America lithium production in southwest Arkansas, an
area known to hold significant lithium deposits. The product offer
will be branded as Mobil Lithium, building on the rich history of
deep technical partnership between Mobil and the automotive
industry.
“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 acquired the rights to 120,000 gross
acres of the Smackover formation in southern Arkansas – considered
one of the most prolific lithium resources of its type in North
America.
“South Arkansas is our state’s all-around energy capital,
producing oil, natural gas, and now thanks to investments like
ExxonMobil’s and their combination of skills and scale, lithium,”
said Arkansas Governor Sarah Huckabee Sanders. “My administration
supports an all-of-the-above energy strategy that guarantees good,
high-paying jobs for Arkansans – and we’ll continue to cut taxes
and slash red tape to make that happen.”
Southwest Arkansas has a history as an oil and natural gas
producer, and the region’s geology is well understood. ExxonMobil
is working with local and state officials to enable the successful
scale-up of Arkansas’ emerging lithium industry.
Lithium Production Benefits
After using conventional oil and gas drilling methods to access
lithium-rich saltwater from reservoirs about 10,000 feet
underground, ExxonMobil will utilize direct lithium extraction
(DLE) technology to separate lithium from the saltwater. The
lithium will then be converted onsite to battery-grade material.
The remaining saltwater will be re-injected into the underground
reservoirs. The DLE process produces fewer carbon emissions than
hard rock mining and requires significantly less land.
“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 is essential to the production of lithium-ion batteries,
which are used in electric vehicles, consumer electronics, energy
storage systems and other clean energy technologies. Demand for
lithium is expected to quadruple by 2030, and virtually all lithium
today is produced outside of North America.
Growing Lithium Production and Low Carbon Solutions
The company is targeting its first lithium production for 2027
and is evaluating growth opportunities globally. By 2030,
ExxonMobil aims to be producing enough lithium to supply the
manufacturing needs of well over a million EVs per year.
Discussions with potential customers, including EV and battery
manufacturers, are ongoing.
About ExxonMobil
ExxonMobil, one of the largest publicly traded international
energy and petrochemical companies, creates solutions that improve
quality of life and meet society’s evolving needs.
The corporation’s primary businesses - Upstream, Product
Solutions and Low Carbon Solutions – provide products that enable
modern life, including energy, chemicals, lubricants, and lower
emissions technologies. ExxonMobil holds an industry-leading
portfolio of resources, and is one of the largest integrated fuels,
lubricants, and chemical companies in the world. ExxonMobil also
owns and operates the largest CO2 pipeline network in the United
States. In 2021, ExxonMobil announced Scope 1 and 2 greenhouse gas
emission-reduction plans for 2030 for operated assets, compared to
2016 levels. The plans are to achieve a 20-30% reduction in
corporate-wide greenhouse gas intensity; a 40-50% reduction in
greenhouse gas intensity of upstream operations; a 70-80% reduction
in corporate-wide methane intensity; and a 60-70% reduction in
corporate-wide flaring intensity.
With advancements in technology and the support of clear and
consistent government policies, ExxonMobil aims to achieve net-zero
Scope 1 and 2 greenhouse gas emissions from its operated assets by
2050. To learn more, visit exxonmobil.com and ExxonMobil’s
Advancing Climate Solutions.
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Cautionary Statement
Statements of future events, investments, or performance in this
release are forward-looking statements. Actual future results,
including project plans, timing, capacities, and costs could differ
materially depending on a number of factors including the ability
to execute operational objectives on a timely and successful basis;
implementation of government frameworks and permitting for lithium
extraction; timely completion of construction projects; commercial
interest in lithium products; consumer interest in electric
vehicles; changes in plans or objectives prior to final funding
decisions or project startups; unforeseen technical or operational
difficulties; and other factors discussed under the heading Factors
Affecting Future Results in the Investors section of our website at
www.exxonmobil.com. Any forward-looking statement speaks only as of
the date of this press release and ExxonMobil disclaims any
obligation to update any forward-looking statement.
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