The long-awaited lithium strategy by Exxon Mobil Corp (NYSE: XOM) is set to revolutionize the industry with its Arkansas production plans. As reported by Reuters, the company is gearing up to commence lithium production for electric vehicle (EV) batteries by 2026.
Expanding into the EV Market
Exxon Mobil aims to bolster global ultralight metal production by extracting it from salty brine deposits worldwide and supplying it to battery manufacturers. The company’s collaboration with Tetra Technologies Inc (NYSE: TTI) is expected to yield at least 10,000 metric tons of lithium annually by 2026 in Arkansas, enough to power 100,000 EV batteries.
Earlier this year, Exxon Mobil entered an agreement with Tetra to develop over 6,100 lithium-rich acres in Arkansas, further solidifying its foothold in the lithium market. Separate from the Tetra deal, the oil and gas giant also holds plans to commence lithium production from over 100,000 acres in Arkansas by 2027.
In its recent Q3 FY23 report, Exxon Mobil reported an adjusted net profit of $9.12 billion, reflecting a decrease from the previous year. Despite this, the company’s strategic expansion into the EV and lithium market signifies a promising future, driving positive sentiment among investors and industry enthusiasts.
Amidst these groundbreaking developments, XOM shares are already showing positive movement, trading higher by 0.31% at $104.07 premarket on the last check Monday. This optimistic price action further underscores the potential impact of Exxon Mobil’s foray into lithium production.
Exxon Mobil’s entry into lithium production marks an exciting shift towards sustainable energy solutions and positions the company as a significant player in the EV revolution. The strategic partnership with Tetra Technologies Inc and the ambitious production targets in Arkansas signal a bright future for Exxon Mobil in the rapidly evolving energy landscape.