Exxon Mobil Plans to Produce Lithium for Electric-Vehicle Batteries by 2027


Exxon Mobil Corp. has announced its intention to enter the lithium production industry for electric-vehicle (EV) batteries. The company aims to establish its brand, Mobil Lithium, with a mining operation in southwest Arkansas. By 2027, Exxon Mobil plans to begin producing lithium and become a leading supplier in this market.

Although specific sales figures have not been disclosed, Exxon Mobil has set an ambitious target to produce enough lithium to meet the manufacturing needs of over one million EVs per year by 2030. Dan Ammann, president of ExxonMobil low carbon solutions, emphasizes that the company’s expertise will be leveraged to extract lithium reserves in North America with minimal environmental impact compared to traditional mining methods.

To kickstart this venture, Exxon Mobil has acquired rights to 120,000 gross acres of the Smackover formation in Arkansas. This area is highly regarded as one of the most abundant lithium resources in North America. The move has received support from Arkansas Governor Sarah Huckabee Sanders, who believes it aligns with the state’s objective of promoting diverse energy sources and creating well-paying job opportunities.

In early trading, Exxon Mobil stock rose by 0.3%, while its year-to-date performance shows a decline of 5.9% compared to a 3.4% increase by the Dow Jones Industrial Average DJIA.

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