Exxon Mobil is expected to reveal its much awaited lithium strategy on Monday, stating that it intends to begin producing the metal used in EV batteries in Arkansas by 2026, says a Reuters report quoting a source with firsthand knowledge of the oil major’s plans.

Exxon’s entry into the industry coincides with new technologies that seek to increase the amount of the lightweight metal produced worldwide by removing it from brine deposits that are found all over the world and giving it to battery manufacturers who are in need of new sources.

In what has been dubbed “Project Evergreen,” Exxon, which developed the lithium-ion battery in the 1970s but withdrew from the technology, intends to start producing at least 10,000 metric tonnes of lithium annually in Arkansas by 2026 in collaboration with Tetra Technologies.

That first output would be around the same as what would be required to make 100,000 EV batteries.

This year, Tetra, a company that makes chemicals for recycling and water treatment, and Exxon reached an agreement to develop more than 6,100 acres in Arkansas rich in lithium, according to a report by Reuters.

In order to investigate the massive Smackover structure, a geological structure that stretches from Florida to Texas and is brimming with brine rich in lithium and bromine, Exxon has begun digging wells in Arkansas this year.

The insider, who wished to remain anonymous, claims that the business has also been developing new direct lithium extraction (DLE) technology, which is essential for commercial operations but has not yet been verified.

A representative for Exxon declined to comment. It was not immediately possible to reach a Tetra official for comment.

The idea of selling a new product with comparatively little additional expense is what excites Exxon and other oil firms about lithium production. In a call with investors on October 4, Darren Woods, the CEO of Exxon since 2017, stated that the lithium market was “fairly promising.”

“We see an opportunity to really leverage the things that we’re pretty good at,” he also said.

Like other fossil fuel companies, Exxon has come under pressure to lower its operational carbon emissions. This year, Reuters revealed that Engine No. 1, an Exxon stakeholder, put pressure on the business to use DLE.

The insider states that Exxon is not anticipated to make a public announcement regarding the DLE technology it has selected. The business has a history of withholding information on certain of its vendors.

This year, Reuters revealed that Exxon and Chevron had discussions over DLE technology licencing with International Battery Metals and EnergySource Minerals.

According to the source, Exxon also owns more than 100,000 acres in Arkansas, where it intends to start producing lithium by 2027, independent of its Tetra cooperation.

According to Reuters, Exxon purchased that land this year from privately held Galvanic Energy.

Exxon’s intentions to grow its lithium activities outside of Arkansas were unclear. Exxon removes water with traces of lithium, just like all other oil companies do, as part of the process of producing fossil fuels. If DLE technologies are successful in being commercialised, that might contribute to the oil industry being the world’s largest source of lithium.

A significant regulatory barrier for Exxon, Albemarle, Standard Lithium, and other companies hoping to develop the battery metal in Arkansas. Albemarle has long produced bromine in the southern U.S. state, which is located just north of Louisiana. However, the state does not have a royalty system for lithium, which could cause a short-term delay in development.

Hearings on the subject will be held, according to the Arkansas Oil and Gas Commission, which oversees lithium operations in the state.

Based on an attendance list seen by Reuters, Exxon intends to send at least six personnel to the Benchmark Minerals conference in Los Angeles next week. The company would be attending the important critical minerals conference for the first time.

(Adapted from Reuters.com)