ExxonMobil Drills for Lithium to Lead Energy Transition

EXXONMOBIL has taken a significant stride toward becoming a leading lithium producer by initiating the first phase of production at one of North America's largest lithium brine resources. Located in southwest Arkansas, this site, acquired by the oil and gas major earlier this year, is estimated to contain approximately 4 million tonnes of lithium carbonate equivalent, sufficient to power around 50 million electric vehicles (EVs).

As an essential component in lithium-ion batteries, lithium is poised to play a pivotal role in the ongoing energy transition. The IEA foresees a more than 40-fold increase in lithium demand by 2040, driven by sustainable development, EV growth, and battery storage expansion.

ExxonMobil's strategic move involved the acquisition of 120,000 gross acres in the Smackover formation in southwest Arkansas, a transaction costing over $100 million. Leveraging its expertise in oil and gas, Exxon intends to access lithium-containing brines from reservoirs situated approximately 10,000 feet (3 kilometers) underground. The company plans to employ direct lithium extraction (DLE) technology to separate lithium from the brine, aiming for a production facility near Magnolia, Arkansas, with a capacity of 75,000–100,000 tonnes per year of lithium.

The company envisions the initial production phase to commence in 2027, with a target of producing sufficient lithium by 2030 to supply the manufacturing of over 1 million EVs annually. Exxon is actively engaging with potential customers, including EV and battery manufacturers, for the purchase of its Mobil Lithium product.

Dan Amman, president of ExxonMobil Low Carbon Solutions, described the project as a "win-win-win," emphasizing its potential to enhance North American energy security, expand critical industrial material supplies, and contribute to reducing transportation-related emissions.

In parallel, ExxonMobil is collaborating with local and state officials in Arkansas to support the successful scale-up of the state's emerging lithium industry. Sarah Huckabee Sanders, the governor of Arkansas, highlighted the significance of ExxonMobil's investments in South Arkansas, further solidifying the region's position as an energy hub.

However, while ExxonMobil is making strides toward an energy transition with lithium production, it's crucial to note that the company recently made a significant investment of $60 billion in Pioneer Natural Resources in October, underscoring its ongoing commitment to oil and gas demand.

Direct lithium extraction (DLE) is recognized as a more environmentally friendly alternative to existing lithium production methods. This approach is more energy-efficient, requires less space, and uses less water. Traditional lithium production methods in major producing countries like Australia and Chile involve energy-intensive processes and significant water usage.

Months ago, engineers successfully piloted a process for producing battery-grade lithium carbonate from UK brines, utilizing DLE. This followed Weardale Lithium's achievement as the first company to extract lithium from brines in northeast England, utilizing a direct lithium extraction and crystallization process at a laboratory scale. In the previous year, Cornish Lithium commissioned a UK-first pilot to directly extract lithium brines, signaling the industry's exploration of environmentally sustainable lithium production methods.