Exxon Mobil Corporation (NYSE:XOM) on Monday announced plans to produce lithium for electric vehicle (EV) batteries as soon as 2027.
The energy giant said it is setting up a lithium drilling operation in Arkansas after purchasing 120,000 acres of land earlier this year at a geological site called the Smackover formation, which is rich in lithium.
Exxon noted it aims to supply enough lithium to support the manufacture of one million EVs annually by 2030.
"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," ExxonMobil Low Carbon Solutions president Dan Ammann said in a statement.
ExxonMobil said it will utilize direct lithium extraction (DLE) technology to separate lithium from the saltwater, with the remaining saltwater to be re-injected into the underground reservoirs.
The company added that the DLE process produces fewer carbon emissions than hard rock mining and requires significantly less land.
The US relies on imports from Argentina and Chile for its lithium needs despite having some of the largest deposits of the mineral in the world, CNBC reported citing data from the US Geological Survey.
Shares of Exxon Mobil rose 0.9% to $104.68 in early Monday trading but have fallen 2% year to date.
Contact Sean at sean@proactiveinvestors.com