Exxon focuses on lithium extraction and bets on the rise of electric vehicles

The newspaper The Wall Street Journal (WSJ) announced that Exxon Mobilethe largest US oil company, is focused on extracting lithium – a key ingredient in batteries for electric cars, cell phones and laptop computers – thus preparing for a future less dependent on gasoline.

The oil giant, based in Texas, recently bought the drilling rights on land in Arkansas (southern US state) from where it intends to produce the mineral, according to the specialized media.

Exxon bought 120,000 gross acres (about 48,562 hectares) in the Smackover formation, in southern Arkansas, from Galvanic Energy for more than US$ 100 million (about 92 million euros).

The oil company could begin drilling in the coming months, according to the outlet.

This new bet by the company, according to sources with whom the WSJ was able to speak, reflects Exxon’s recognition that demand for internal combustion engines could soon peak and marks the return of the oil company to an industry in which it was a pioneer almost 50 years ago.

Exxon CEO, Darren Woodssaid last year that the demand for fossil fuels it would remain strong for decades, fueled by chemical production and heavy transportation and industry.

Exxon projected last year that demand for light-vehicle internal combustion engine fuels could peak in 2025, while electric, hybrid and fuel cell-powered vehicles could grow to more than 50% of sales. of new cars by 2050.

The company also projected that the global fleet of electric vehicles could number 420 million by 2040, up from 3 million in 2017.

USA once the world’s largest lithium producer, and in the 1970s, Exxon played a key role in this industry, but its production has plummeted and it is now dependent on other nations such as China for your supply of this item.

Source: EFE