On November 13, 2023, ExxonMobil announced plans to become a leading producer of lithium.[1] The company’s first phase of North American lithium production has begun in southwest Arkansas. ExxonMobil acquired the rights to 120,000 gross acres of the Smackover formation in southern Arkansas – considered one of the most prolific lithium resources of its type in North America—in early 2023. ExxonMobil said it “is working with local and state officials to enable the successful scale-up of Arkansas’ emerging lithium industry.” ExxonMobil will use conventional oil and gas drilling methods to access lithium-rich saltwater from reservoirs about 10,000 feet underground, then utilize direct lithium extraction (DLE) technology to separate lithium from the saltwater. The lithium will be converted onsite to battery-grade material, while the remaining saltwater will be re-injected into the underground reservoirs. The process produces lower carbon emissions than hard rock mining and requires less land.

Lithium is essential to the production of lithium-ion batteries. Demand for lithium is expected to quadruple by 2030, but nearly all lithium is currently produced outside North America. The first production target for the project is set for 2027, and the company is evaluating growth opportunities globally. By 2030, ExxonMobil aims to be producing enough lithium to supply the manufacturing needs of over a million electric vehicles (EVs) per year.

[1] https://corporate.exxonmobil.com/news/news-releases/2023/1113_exxonmobil-drilling-first-lithium-well-in-arkansas