- Exxon Mobil (NYSE:XOM) has started to prepare for a future that will be significantly less reliant on gasoline.
- Exxon recently purchased drilling rights to a sizable chunk of Arkansas land from which it aims to produce the mineral, a key ingredient in batteries for electric cars, cellphones, and laptops, reported the Wall Street Journal, citing people familiar with the matter.
- According to the sources, lithium is far removed from the fossil-fuel business, which has powered Exxon’s profits for over a century. It signals the company’s assessment that demand for internal combustion engines could soon peak.
- The report mentions that Exxon acquired 120,000 gross acres from Galvanic Energy, an exploration firm, in the Smackover formation of southern Arkansas, for more than $100 million.
- Galvanic said last year that a third-party consultant it hired estimated the prospect could have 4 million tons of lithium carbonate equivalent to power 50 million EVs, added the report.
- Exxon has plans to spend $17 billion through 2027 on cutting carbon emissions and developing low-carbon technologies, mentioned WSJ.
- Also Read: Exxon Mobil Gets Approval From Guyanese Government For Local Content Annual Plan; Eyes Partnerships, Investments
- Exxon’s CEO, Darren Woods, said last year that heavy industry, heavy transportation, and the production of chemicals would drive demand for fossil fuels for decades to come.
- Lithium production would also diversify Exxon’s portfolio and expose them to a market that is expanding quickly. The company is setting up other facets of its operations to support electric automobiles.
- Price Action: XOM shares are trading higher by 0.20% at $106.46 on the last check Monday.
- Photo via Wikimedia Commons
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