Exxon's Lithium Production Plans: A Game-Changer for Electric Vehicles
Exxon Mobil plans to enter the lithium production sector and aims to start producing the electric vehicle (EV) battery metal in Arkansas by 2026. The company plans to produce at least 10,000 metric tons per year of lithium in partnership with Tetra Technologies, which would be equivalent to the amount needed for 100,000 EV batteries. Exxon has been drilling wells in Arkansas to study lithium-rich brine deposits and has been testing direct lithium extraction (DLE) technology. The move into lithium production offers Exxon the opportunity to sell a new product with relatively little added cost and reduce carbon emissions. However, regulatory challenges and the absence of a royalty structure for lithium in Arkansas could potentially delay development.