Exxon Mobil's Strategic Shift: Enters Second Lithium Venture in Bid to Boost US EV Supply Chain
Portfolio Pulse from Vandana Singh
Exxon Mobil Corp (XOM) has entered into a deal with Tetra Technologies Inc (TTI) to exploit over 6,100 lithium-rich acres in Arkansas, marking Exxon's second venture into resources necessary for EV battery metals production. This move aligns with a broader trend of traditional energy companies focusing on new technologies to enhance the global availability of lithium. The partnership allows Tetra to have a large partner with significant capital, assisting in bromine production from the acreage. For Exxon, the partnership provides access to another source of lithium in the U.S. as the country rapidly scales up its EV supply chain.
June 29, 2023 | 11:53 am
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Standard Lithium Ltd (SLI) has begun initial work on developing a project in Arkansas, where it has agreed to lease more than 27,000 acres from Tetra Technologies for lithium production.
Standard Lithium's lease agreement with Tetra Technologies for lithium production in Arkansas shows the company's active involvement in the lithium production sector. This could potentially boost Standard Lithium's stock in the short term as it shows the company's ongoing projects and potential for growth in the sector.
CONFIDENCE 70
IMPORTANCE 60
RELEVANCE 50
POSITIVE IMPACT
Tetra Technologies' partnership with Exxon Mobil provides it with a large partner with significant capital, assisting in bromine production from the acreage. This could potentially boost Tetra's position in the battery manufacturing sector.
Tetra's partnership with Exxon provides it with a significant capital partner, which could potentially boost its position in the battery manufacturing sector. This could potentially boost Tetra's stock in the short term as it shows the company's strategic partnerships and potential for growth in the sector.
CONFIDENCE 75
IMPORTANCE 70
RELEVANCE 100
POSITIVE IMPACT
Exxon's partnership with Tetra Technologies to exploit lithium-rich acres in Arkansas could potentially boost Exxon's position in the EV battery metals production sector. However, the financial terms and production timeline are yet to be disclosed.
Exxon's move into lithium resources is a strategic shift that aligns with the growing demand for EVs and the necessary resources for their production. This could potentially boost Exxon's stock in the short term as it shows the company's adaptability and forward-thinking approach. However, the lack of disclosed financial terms and production timeline introduces some uncertainty.
CONFIDENCE 75
IMPORTANCE 80
RELEVANCE 100