ExxonMobil Drills Into EV Future With SK On Lithium Deal
Portfolio Pulse from Lekha Gupta
ExxonMobil (XOM) has signed a non-binding MOU with SK On for a multiyear offtake agreement for up to 100,000 metric tons of Mobil Lithium from its Arkansas project. This aligns with ExxonMobil's goal to supply lithium for one million EV batteries annually by 2030. The project aims for efficient, environmentally friendly lithium production. Investors can gain exposure to XOM via Energy Select Sector SPDR Fund (XLE) and iShares U.S. Energy ETF (IYE).
June 25, 2024 | 4:43 pm
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POSITIVE IMPACT
The iShares U.S. Energy ETF (IYE) offers investors exposure to ExxonMobil's advancements in the lithium market. ExxonMobil's strategic moves in the EV sector could positively impact the ETF's performance.
IYE includes ExxonMobil, and its performance could benefit from ExxonMobil's strategic initiatives in the lithium market, potentially leading to positive short-term impacts.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 50
POSITIVE IMPACT
Investors can gain exposure to ExxonMobil's growth in the lithium market through the Energy Select Sector SPDR Fund (XLE). The fund's performance may benefit from ExxonMobil's strategic moves in the EV sector.
XLE includes ExxonMobil, and its performance could benefit from ExxonMobil's strategic initiatives in the lithium market, potentially leading to positive short-term impacts.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 50
POSITIVE IMPACT
ExxonMobil's MOU with SK On for lithium offtake aligns with its goal to supply lithium for one million EV batteries annually by 2030. The project aims for efficient, environmentally friendly production, enhancing ExxonMobil's position in the growing lithium market.
The MOU with SK On is a significant step for ExxonMobil in the lithium market, aligning with its long-term goals and potentially boosting its stock price due to the growing demand for lithium in EVs.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100