The rise of electromobility has catapulted lithium to a central position in the global economy. This metal is essential for the manufacture of electric vehicle batteries, and its demand has skyrocketed in recent years. Traditional energy companies, such as ExxonMobil and Equinor, are recognizing the strategic potential of lithium and are making significant investments in its extraction and production.
ExxonMobil has announced plans to become one of the world’s leading lithium suppliers. The company is developing a production plant in the Smackover geological formation in Arkansas, with the aim of starting marketing in 2027. Using the direct lithium extraction (EDL) technique, which is more efficient and less harmful to the environment than traditional methods, ExxonMobil expects to produce enough lithium for one million electric vehicles per year by 2030.
For its part, Equinor, in collaboration with Standard Lithium, has secured a $225 million grant from the US Department of Energy to develop a lithium extraction facility in southwest Arkansas. This project, which is expected to be one of the first commercial direct lithium extraction facilities worldwide, aims to produce 45,000 tons of lithium carbonate annually in two phases. The final investment decision is scheduled for the end of 2025, with the production of the first phase scheduled to begin in 2028.
These investments reflect a diversification strategy on the part of large energy companies, which seek to position themselves in the electromobility supply chain and capitalize on the growing demand for lithium. For business leaders, understanding the dynamics of this emerging market is crucial to identify investment and adaptation opportunities in a world moving towards sustainability.
