According to media reports citing insiders, energy giant ExxonMobil will officially announce next Monday local time that it plans to start producing metal for electric vehicle batteries in Arkansas in 2026.
According to sources, ExxonMobil will collaborate with Tetra Technologies to produce at least 10000 tons of lithium annually in Arkansas starting from 2026, which is approximately the amount required to produce 100000 electric vehicle batteries. The project is called the "Project Evergreen".
Previously, there were media reports that ExxonMobil had agreed to develop over 6100 acres of lithium rich land with Tetra in Arkansas. Tetra produces chemicals for water treatment and recycling.
According to sources, in addition to its partnership with Tetra, ExxonMobil also controls over 100000 acres of land in Arkansas and plans to start producing lithium by 2027.
ExxonMobil has been drilling oil wells in Arkansas this year to study the massive Smackover formation, which extends from Florida to Texas and contains a large amount of saline water rich in lithium and bromine.
It is reported that ExxonMobil is testing the unproven Direct Lithium Extraction (DLE) technology, which is crucial for commercial operations, but the company is not expected to publicly announce which DLE process it has chosen.
DLE technology is still in its early stages and there are currently various processes available. The advantage of DLE is that it can eliminate or reduce the size of the evaporation pool, reduce the use of fresh water, shorten production time, and increase the recovery rate of traditional salt water operations from 40% to over 80%.
According to media reports, ExxonMobil and Chevron have negotiated DLE technology licensing with International Battery Metals and EnergySource Minerals.
It is currently unclear whether ExxonMobil plans to expand its lithium business outside of Arkansas. Like all oil producers, ExxonMobil extracts water containing trace amounts of lithium during the production of fossil fuels. If DLE technology can be commercialized on a large scale, it will help transform the petroleum industry into a lithium supplier.