The mineral oil company ExxonMobil has announced that it will enter the booming market for electric vehicle batteries. With the acquisition of drilling rights for an area in southern Arkansas, the company signals its ambitions to become the leading manufacturer in the lithium business. With this move, ExxonMobil is responding to the increasing demand for lithium, a key element for electric vehicle batteries.

ExxonMobil Underlines its Leadership Role in the Energy Transition with Acquisition of Drilling Rights in One of the Most Productive Lithium Resources in North America

A look at the market for electric vehicles shows that the demand from the industry is strong. Lithium, as a key element for batteries, is considered essential. ExxonMobil therefore aims to become the leading supplier for electric vehicles and emphasizes the importance of lithium for the energy transition. "This groundbreaking project leverages ExxonMobil's decades of experience to tap into huge reserves of North American lithium, with significantly lower environmental impacts than conventional mining operations," says Dan Ammann, President of ExxonMobil Low Carbon Solutions.

The company has already launched its lithium product range under the brand "Mobil Lithium" and plans to begin its first lithium production by 2027. Growth opportunities are also being explored worldwide. The drilling rights for the 48.5-hectare area were already acquired at the beginning of 2023, but no information was provided about the financial details. However, according to the Wall Street Journal, the costs amount to approximately 100 million US dollars.

But the expansion of lithium production in Arkansas is just the beginning of ExxonMobil's ambitions in this area. It was already reported beforehand that Exxon subsidiary Imperial Oil had entered into a partnership with the lithium project in Alberta. This project is being operated together with the metal company E3 Lithium.

For the oil company, the entry into the lithium business is apparently an important step in reducing its dependence on the oil market. Therefore, the company explicitly emphasizes the growth prospects in this area. By 2030, ExxonMobil plans to produce enough lithium to meet the demand of over one million electric vehicles per year. The company is already in talks with potential customers, including manufacturers of electric vehicles and batteries.