Exxon Mobil's Lithium Production in Arkansas Boosts EV Supply Chain

Exxon Mobil plans to establish a facility in Arkansas to produce lithium, a critical raw material for electric vehicle batteries. This move signals the oil giant's intention to diversify its investments and hedge against the challenges posed by electric vehicles to its oil business. Exxon aims to begin lithium production in 2027 and produce enough to supply over a million electric vehicles annually by 2030. The company plans to use a new technology called "direct lithium extraction" to economically extract lithium from underground brine in Arkansas. While some experts are skeptical about the scalability of this method, Exxon is confident in its success. The move reflects Exxon's recognition of the growing importance of electrification in the energy transition and its desire to reduce emissions associated with transportation.