Exxon Bets on Lithium To Complement its Legacy Oil Business

📆 6/29/2024 11:18 PM
📰 OilandEnergy

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Exxonmobil News

Lithium,Oil,Gas

Exxon is hedging its oil bets with a project to extract lithium from underground saltwater deposits in southwest Arkansas.

ExxonMobil joined major lithium producers this week in reiterating a bullish outlook on long-term lithium demand despite the current bearish market and recent price slump of the metal critical for the energy transition. Lithium prices have crashed in recent months, dragged down by piling inventories amid slowing growth in electric vehicle sales.

The company is in ongoing discussions with potential customers, including EV and battery manufacturers. This week, Exxon signed a non-binding memorandum of understanding with South Korean EV battery developer SK On, which could pave the way to a multi-year offtake agreement of up to 100,000 metric tons of Mobil Lithium from the company's first planned project in Arkansas. SK On plans to use the lithium in its EV battery manufacturing operations in the United States.

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