ExxonMobil continues to diversify its energy portfolio as it aims to be a major U.S. lithium supplier for makers of electric vehicle batteries.
The company, which today announced plans to begin drilling for lithium in Arkansas, aims to become a major supplier by the end of the decade. The company says it is drilling its first lithium well in Arkansas’ Smackover region and plans to start producing battery-grade lithium by 2027.
ExxonMobil also announced it would call its product Mobil Lithium, returning to a business it has not been involved in since the 1970s.
The Texas-based energy giant has been planning to enter the lithium business since May after purchasing drilling rights on 120,000 acres in southwest Arkansas for $100 million, The Wall Street Journal reports.
The outlook surrounding lithium has shifted in the past few months with prices plunging more than 60% as new supplies have hit the market and the growth in EV sales has eased. Some automakers have cut prices amid signs that demand is losing steam, The Wall Street Journal adds. Read more.