Exxon Mobil Plans To Start Lithium Production By 2026 In Arkansas: Report
Portfolio Pulse from Lekha Gupta
Exxon Mobil Corp (XOM) plans to start lithium production in Arkansas by 2026, aiming to produce at least 10,000 metric tons annually in partnership with Tetra Technologies Inc (TTI). This move into the electric vehicle (EV) battery metal sector involves filtering lithium from brine deposits. XOM has also secured over 6,100 lithium-rich acres in Arkansas with TTI and plans additional production from another 100,000 acres by 2027. XOM's Q3 FY23 adjusted net profit was $9.12 billion, down from the previous year. XOM shares saw a slight premarket increase.
November 13, 2023 | 11:41 am
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POSITIVE IMPACT
Tetra Technologies is partnering with Exxon Mobil to produce lithium in Arkansas, which could impact TTI's business operations and revenue.
The partnership with XOM for lithium production could significantly benefit TTI by expanding its business scope and potentially increasing its revenue, especially given the growing demand for EV battery components.
CONFIDENCE 80
IMPORTANCE 75
RELEVANCE 70
POSITIVE IMPACT
Exxon Mobil is entering the lithium production market, with plans to start by 2026 in Arkansas, and has reported a decrease in Q3 FY23 profits.
Entering the lithium market could provide a new revenue stream for XOM and position it in the growing EV sector. The reported profit drop is a concern, but the premarket share increase suggests positive investor sentiment towards the lithium strategy.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 90