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Quoted By:
https://www.ft.com/content/03094aeb-ac3e-4634-bf6f-22579f74faa0
ExxonMobil plans to begin producing lithium in 2027 in a major strategic pivot, as the biggest western oil producer bets it can use its expertise in drilling and processing to become a leading player in the battery metal.
The company said on Monday it had begun work to extract lithium from underground brines in the southern US state of Arkansas, where it has acquired the rights to 120,000 acres of land in the Smackover formation.
“We think we’re going to build a profitable and high-growth business for the long term here. So it’s a big deal,” said Dan Amman, head of Exxon’s low-carbon solutions business, adding that the project built on the company’s “existing knowhow”.
“We’re drilling wells 10,000 feet underground into these saltwater reservoirs. That’s obviously directly in our wheelhouse and capability skillset,” Amman said in an interview with the Financial Times.
The move comes as the energy transition drives a surge in demand for the battery metal. The International Energy Agency has predicted consumption could increase by a factor of more than 40 between 2020 and 2040, on the back of rapid growth in the use of lithium-ion batteries needed for electric vehicles and energy storage.
ExxonMobil plans to begin producing lithium in 2027 in a major strategic pivot, as the biggest western oil producer bets it can use its expertise in drilling and processing to become a leading player in the battery metal.
The company said on Monday it had begun work to extract lithium from underground brines in the southern US state of Arkansas, where it has acquired the rights to 120,000 acres of land in the Smackover formation.
“We think we’re going to build a profitable and high-growth business for the long term here. So it’s a big deal,” said Dan Amman, head of Exxon’s low-carbon solutions business, adding that the project built on the company’s “existing knowhow”.
“We’re drilling wells 10,000 feet underground into these saltwater reservoirs. That’s obviously directly in our wheelhouse and capability skillset,” Amman said in an interview with the Financial Times.
The move comes as the energy transition drives a surge in demand for the battery metal. The International Energy Agency has predicted consumption could increase by a factor of more than 40 between 2020 and 2040, on the back of rapid growth in the use of lithium-ion batteries needed for electric vehicles and energy storage.
