Moving away from Oil and onto Lithium. This is one company that knows how to drill. Wayne Gerdes – CleanMPG – Nov. 20, 2024 ExxonMobil’s first lithium rig, part of an appraisal program underway in Arkansas now. ExxonMobil and LG Chem just signed signed a non-binding memorandum of understanding (MOU) for a multiyear agreement for up to 100,000 metric tons of lithium carbonate. The lithium will be supplied from Exxon Mobil’s planned project in the U.S. to LG Chem’s cathode plant in Tennessee, which LG Chem expects to be the largest of its kind in the U.S. The final investment decision will be subject to the establishment of commercially competitive regulatory frameworks. The planned production of Mobil Lithium will utilize Direct Lithium Extraction (DLE) technology, aligning seamlessly with ExxonMobil’s core competencies in subsurface exploration, drilling, and chemical processing. This approach offers U.S. EV battery manufacturers a domestically extracted and processed lithium supply option which is expected to have substantially lower environmental impacts, including approximately two-thirds less carbon intensity than hard rock mining. Arkansas Lithium Mining Detail Southwest Arkansas has a long history as an oil and gas producer. Deep underground is another valuable resource: saltwater brine, rich in lithium. ExxonMobil can safely produce this lithium using many of the skills they have honed over decades, including geoscience, reservoir engineering and chemical processing. The Process Extract lithium-rich brine from rock formations deep underground (~10,000 feet) Once the mixture is above ground, a process called Direct Lithium Extraction (DLE) extracts lithium from the brine quickly and cost effectively Pump the leftover brine back underground, into the same reservoirs it came from This process is similar to many process technologies ExxonMobil uses in its existing petrochemical businesses and is projected to be ~ 2/3 less carbon intensive than hard-rock mining. A successful start is already on display in Arkansas, where work was completed on their first lithium well earlier this year and many more already underway. The Arkansas “appraisal wells” are providing information about the states underground reservoirs and sampling the brine from which lithium can be extracted. Commercial production is targeted for 2027 and will strengthen the US’ supply security for Auto and EV companies investing in battery manufacturing facilities in North America. The product will be branded as Mobil Lithium, building on the rich history of deep technical partnership between Mobil and the automotive industry. By 2030, ExxonMobil expects to produce enough lithium to supply the manufacturing needs of about 1 million EVs/year.
