Oil and gas giant ExxonMobil is entering the lithium battery field! Start production in 2026

According to news on November 13, according to Reuters, oil and gas giant ExxonMobil will announce its lithium project strategy and announce plans to start production of a lithium mine project in Arkansas in 2026.

ExxonMobil is expected to work with partner Tetra Technologies to produce at least 10,000 tons of lithium per year, with an initial output equivalent to the amount required to produce 100,000 electric vehicle batteries, sources said. The project is called "Project Evergreen" .

In addition to its partnership with Tetra, ExxonMobil controls more than 100,000 acres in Arkansas and plans to begin producing lithium by 2027.

It’s worth noting that ExxonMobil invented lithium-ion batteries in the 1970s but later abandoned the technology. Now, with the rapid development of the electric vehicle market, ExxonMobil has decided to regain lithium battery technology and enter this field again.

It was previously reported that Exxon Mobil is seeking buyers to support its entry into lithium mining and is in talks with Albemarle, the world's largest lithium producer, and battery manufacturers Samsung and SK, as well as with Tesla, Volkswagen and Ford. Automakers such as Cars negotiate for lithium supplies.

You must know that compared to European oil companies such as BP, Shell and Total Energy that actively embrace green energy transformation, ExxonMobil, a representative of American oil companies, has always been conservative and lagging in its attitude towards energy transformation. This time it has entered the lithium battery industry. The industry must be fully prepared.

The IEA has estimated that to achieve net-zero emissions in 2050, the world will need about 2 billion electric vehicles on the road. By 2040, the demand for minerals used in electric vehicles and battery storage may increase by at least 30 times, of which lithium demand may increase by more than 40 times. According to Bloomberg, the global market demand for battery metal raw materials will increase by 50% this year, reaching 4.8 million tons. Among them, lithium demand will grow the fastest, and may surge more than 7 times between 2021 and 2030.

ExxonMobil should have seen this huge incremental market before deciding to enter the lithium battery field. As one of the world's largest oil and gas producers, ExxonMobil's entry will bring a new competitive landscape to the lithium battery field and will also promote the further development of new energy vehicles.