The American oil giant Exxon Mobil has announced that it will begin extracting lithium in the U.S. in 2027 to secure supplies of the key metal used in electric vehicle batteries and electronics.
The company will extract lithium from saline groundwater in the state of Arkansas, known for its significant lithium deposits, to ensure a domestic source of supply, according to a statement released on Monday.
Exxon plans to supply lithium for more than one million electric vehicles annually and become a leading supplier of the metal by 2030.
Dan Ammann, president of Exxon’s Low Carbon business unit, did not disclose how much Exxon intends to invest in the lithium business or when it might become profitable.
Analysts at financial firm TD Cowen estimate that they would need to invest around two billion dollars to produce 50,000 tons of lithium, with a potential profit of 800 million dollars.
The largest American oil company stated that it will use conventional drilling methods employed in oil and gas extraction and then direct extraction technology to separate lithium from saline water.
It will join forces with partner Tetra Technologies, produce lithium at the extraction site, and sell it under the brand Mobil Lithium.
