Exxon aims to become a top lithium producer for electric vehicles with Arkansas drill operation

In this article

Exxon Mobil aims to become a leading producer of lithium for electric vehicle batteries

1. Introduction
2. Exxon’s Lithium Production Operation in Arkansas
3. Goals and Timeline
4. Discussions with Potential Customers
5. Addressing Climate Change
6. Ramping up Domestic Production of Lithium
7. Reliance on Imports and Growing Demand
8. The Potential of Electric Vehicles
9. Drilling Techniques and Battery Production
10. Conclusion

Introduction

Exxon Mobil aims to become a leading producer of lithium for electric vehicle batteries through a drilling operation the oil giant is launching in Arkansas, the company announced Monday.

Exxon’s Lithium Production Operation in Arkansas

Exxon earlier this year purchased 120,000 acres of a geological site in southern Arkansas called the Smackover Formation that is rich in lithium.

Goals and Timeline

The company will start producing battery-grade lithium at the site as soon as 2027, and aims to supply enough of the mineral to support the manufacture of 1 million electric vehicles annually by 2030.

Discussions with Potential Customers

Discussions with potential customers such as electric vehicle and battery manufacturers are ongoing, Exxon said in a statement.

Addressing Climate Change

The lithium operation comes as the major oil companies are under pressure to address climate change. While Shell and BP have focused on renewables such as wind and solar, Exxon is investing $17 billion through 2027 to reduce emissions with a focus on carbon capture, hydrogen, and biofuels.

Ramping up Domestic Production of Lithium

Dan Ammann, president of Exxon’s low carbon solutions business, told CNBC that ramping up domestic production of lithium is crucial to the energy transition. Exxon views lithium as a decadeslong investment with high growth potential as the U.S. shifts to electric vehicles, Ammann said.

“We want to get in early,” Ammann told CNBC’s “Squawk Box.” “We want to lead the way on domestic production of lithium, do it with a very favorable environmental footprint and set that as the standard.”

Reliance on Imports and Growing Demand

The U.S. is heavily reliant on imports from Argentina and Chile for its lithium needs despite having some of the largest deposits of the mineral in the world, according to the U.S. Geological Survey. The U.S currently has just one commercial-scale lithium production operation, in Nevada.

Demand for lithium batteries is expected to surge sixfold in the U.S. by 2030 as the nation shifts to electric vehicles, according to a February report from Li-Bridge, a battery industry group backed by the Department of Energy.

Electric vehicles sales grew 50% in the third quarter of 2023 compared with the same period last year, according to an October report from Cox Automotive. Currently, just 1% of the U.S. vehicle fleet is electric.

“We need to get obviously to a much higher percentage in the long run,” Ammann said. “It’s going to be very high growth, sustained for a very long time. That may have some ups and downs and some fits and starts as we go, but again, we see very much long-term opportunity for playing the long-term game here.”

Drilling Techniques and Battery Production

Exxon is deploying drilling techniques used in oil and gas extraction to access saltwater reservoirs rich in lithium that are 10,000 feet below ground. The lithium is separated from the saltwater and turned into battery-grade material onsite, according to the company.

Conclusion

The lithium battery was invented by a research scientist at Exxon in the 1970s but the oil giant ultimately didn’t pursue the technology.

SDGs, Targets, and Indicators

1. SDG 7: Affordable and Clean Energy

   • Target 7.2: By 2030, increase substantially the share of renewable energy in the global energy mix.
   • Indicator 7.2.1: Renewable energy share in the total final energy consumption.

2. SDG 9: Industry, Innovation, and Infrastructure

   • Target 9.4: By 2030, upgrade infrastructure and retrofit industries to make them sustainable, with increased resource-use efficiency and greater adoption of clean and environmentally sound technologies and industrial processes.
   • Indicator 9.4.1: CO2 emission per unit of value added.

3. SDG 13: Climate Action

   • Target 13.2: Integrate climate change measures into national policies, strategies, and planning.
   • Indicator 13.2.1: Number of countries that have integrated mitigation, adaptation, impact reduction, and early warning into primary, secondary, and tertiary curricula.

4. SDG 15: Life on Land

   • Target 15.3: By 2030, combat desertification, restore degraded land and soil, including land affected by desertification, drought, and floods, and strive to achieve a land degradation-neutral world.
   • Indicator 15.3.1: Proportion of land that is degraded over total land area.

5. SDG 17: Partnerships for the Goals

   • Target 17.16: Enhance the global partnership for sustainable development, complemented by multi-stakeholder partnerships that mobilize and share knowledge, expertise, technology, and financial resources.
   • Indicator 17.16.1: Number of countries reporting progress in multi-stakeholder development effectiveness monitoring frameworks that support the achievement of the sustainable development goals.

Table: SDGs, Targets, and Indicators

Analysis

1. Which SDGs are addressed or connected to the issues highlighted in the article?

The SDGs addressed or connected to the issues highlighted in the article are SDG 7 (Affordable and Clean Energy), SDG 9 (Industry, Innovation, and Infrastructure), SDG 13 (Climate Action), SDG 15 (Life on Land), and SDG 17 (Partnerships for the Goals).

2. What specific targets under those SDGs can be identified based on the article’s content?

Based on the article’s content, the specific targets identified are:

– Target 7.2: Increase substantially the share of renewable energy in the global energy mix.

– Target 9.4: Upgrade infrastructure and retrofit industries to make them sustainable, with increased resource-use efficiency and greater adoption of clean and environmentally sound technologies and industrial processes.

– Target 13.2: Integrate climate change measures into national policies, strategies, and planning.

– Target 15.3: Combat desertification, restore degraded land and soil, including land affected by desertification, drought, and floods, and strive to achieve a land degradation-neutral world.

– Target 17.16: Enhance the global partnership for sustainable development, complemented by multi-stakeholder partnerships that mobilize and share knowledge, expertise, technology, and financial resources.

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

Yes, there are indicators mentioned or implied in the article that can be used to measure progress towards the identified targets. These indicators include:

– Indicator 7.2.1: Renewable energy share in the total final energy consumption.

– Indicator 9.4.1: CO2 emission per unit of value added.

– Indicator 13.2.1: Number of countries that have integrated mitigation, adaptation, impact reduction, and early warning into primary, secondary, and tertiary curricula.

– Indicator 15.3.1

Behold! This splendid article springs forth from the wellspring of knowledge, shaped by a wondrous proprietary AI technology that delved into a vast ocean of data, illuminating the path towards the Sustainable Development Goals. Remember that all rights are reserved by SDG Investors LLC, empowering us to champion progress together.

Source: cnbc.com

Join us, as fellow seekers of change, on a transformative journey at https://sdgtalks.ai/welcome, where you can become a member and actively contribute to shaping a brighter future.