Exxon Mobil Corp on Monday announced it is drilling for lithium in southern Arkansas, with the oil giant expected to begin production of the critical material for electric vehicles by 2027.
Exxon in early 2023 acquired the rights to 120,000 gross acres (48,562 gross hectares) of the Smackover formation in southern Arkansas, considered one of the most prolific lithium resources of its type in North America. Exxon said that by 2030 it aims to produce enough lithium to supply the manufacturing needs for more than one million electric vehicles.
“Lithium is essential to the energy transition, and ExxonMobil has a leading role to play in paving the way for electrification,” Dan Ammann, president of ExxonMobil Low Carbon Solutions, said in a news release.
Exxon didn’t disclose how much it’s spending on the project, which is expected to be a boost for a part of Arkansas that has a history as an oil and gas producer.
“I’m not being dramatic when I say this has the potential to transform our state,” Arkansas Governor Sarah Huckabee Sanders said at a news conference with Exxon and local officials about the project. Columbia County Judge Doug Fields said the county has already been working with Exxon to ensure roads to the well are prepared.
“Just seeing some of this come in like it is, it’s going to be a big pick-me-up for the area,” Fields said.
