UPDATE: This story has been updated to include comments from Gov. Sarah Huckabee Sanders’s news conference on Monday in Little Rock.
AP: Exxon Mobil is drilling for lithium in Arkansas and expects to begin production by 2027
Exxon in early 2023 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. Exxon said that by 2030 it aims to produce enough lithium to supply the manufacturing needs more than 1 million electric vehicles.
“Lithium is essential to the energy transition, and ExxonMobil has a leading role to play in paving the way for electrification,” Dan Ammann, president of ExxonMobil Low Carbon Solutions, said in a news release.
Exxon didn’t disclose how much it’s spending on the project, which is expected to be a boost for a part of Arkansas that has a history as an oil and gas producer.
“I’m not being dramatic when I say this has the potential to transform our state,” Arkansas Gov. Sarah Huckabee Sanders said at a news conference with Exxon and local officials about the project.
Columbia County Judge Doug Fields said the county has already been working with Exxon to ensure roads to the well are prepared.
“Just seeing some of this come in like it is, it’s going to be a big pick me up for the area,” Fields said.
The announcement comes as the U.S. faces a greater need for lithium to meet its clean energy goals, with production of electric vehicles rising.
Exxon said it will use conventional oil and gas drilling methods to access lithium-rich saltwater from reservoirs about 10,000 feet underground. It will then use “direct lithium extraction” technology to separate lithium from the saltwater and convert saltwater onsite to battery-grade material.
The remaining saltwater will be re-injected into the underground reservoirs. Exxon Mobil said its extraction process produces fewer carbon emissions than hard rock mining and requires significantly less land.
Associated Press
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POSTED EARLIER TODAY:
Work has started on ExxonMobil’s first phase of North American lithium production in southwest Arkansas, an area known to hold significant lithium deposits.
On Monday, Exxon Mobil Corporation announced plans to become a leading producer of lithium, a key component of electric vehicle (EV) batteries, with the beginning of the Arkansas project. The product will be branded as MobilLithium. In a release, ExxonMobil said its advanced production approach has the potential to unlock vast supplies of lithium.
“Lithium is essential to the energy transition, and ExxonMobil has a leading role to play in paving the way for electrification,” said Dan Ammann, president of ExxonMobil Low Carbon Solutions. “This landmark project applies decades of ExxonMobil expertise to unlock vast supplies of North American lithium with far fewer environmental impacts than traditional mining operations.”
Lithium is key to the production of lithium-ion batteries, which are used not only in EVs, but also in consumer electronics, energy storage systems, and other clean energy technologies. Demand for lithium is expected to quadruple by 2030, and virtually all lithium today is produced outside of North America.
In early 2023, 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.
“South Arkansas is our state’s all-around energy capital, producing oil, natural gas, and now, thanks to investments like ExxonMobil’s and their combination of skills and scale, lithium,” said Arkansas Gov. Sarah Huckabee Sanders. “My administration supports an all-of-the-above energy strategy that guarantees good, high-paying jobs for Arkansans – and we’ll continue to cut taxes and slash red tape to make that happen.”
After using conventional oil and gas drilling methods to access lithium-rich saltwater from reservoirs about 10,000 feet underground, ExxonMobil will utilize direct lithium extraction (DLE) technology to separate lithium from the saltwater. The lithium will then be converted onsite to battery-grade material. The remaining saltwater will be re-injected into the underground reservoirs. ExxonMobil says the DLE process produces fewer carbon emissions than hard rock mining and requires significantly less land.
“This project is a win-win-win,” Ammann added. “It’s a perfect example of how ExxonMobil can enhance North American energy security, expand supplies of a critical industrial material, and enable the continued reduction of emissions associated with transportation, which is essential to meeting society’s net-zero goals.”
The company is targeting its first lithium production for 2027 and evaluating growth opportunities globally.
By 2030, ExxonMobil said it aims to produce enough lithium to supply the manufacturing needs of well over a million EVs annually. Discussions with potential customers, including EV and battery manufacturers, are ongoing, the release said.
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