ExxonMobil Stays Bullish on Lithium Demand Despite Market Slump
ExxonMobil is standing firm in its optimism for the long-term demand for lithium, despite the current market slump and recent price drops in the critical metal for the energy transition. The company joined major lithium producers in reiterating a bullish outlook on the future of lithium demand, emphasizing the growing need for the metal in electric vehicle (EV) batteries.
Lithium prices have plummeted in recent months due to an oversupply and slowing growth in EV sales. However, industry experts, including Exxon and Albemarle, the world’s largest lithium producer, remain positive about the long-term prospects for the key battery metal.
Exxon’s Lithium Global Business Manager, Patrick Howarth, expressed confidence in the future of EVs and lithium demand, highlighting the essential role of lithium-ion batteries in the transition to cleaner energy sources. The company plans to produce lithium in Arkansas and become a leading EV battery supplier by 2030, aiming to meet the growing demand for lithium-powered vehicles.
Despite the current challenges in the lithium market, Exxon is pushing forward with its plans to extract lithium from underground saltwater deposits and process it into battery-grade material. The company targets first lithium production by 2027 and aims to supply enough lithium for over a million EVs per year by 2030.
This week, Exxon signed a memorandum of understanding with South Korean EV battery developer SK On, signaling a potential offtake agreement for Mobil Lithium from Exxon’s Arkansas project. The agreement aligns with Exxon’s commitment to drive solutions for emissions reduction and support the transition to sustainable transportation.
Exxon’s confidence in the long-term prospects of the lithium market reflects a strategic shift towards cleaner energy solutions and underscores the company’s commitment to meeting the evolving demands of the automotive industry. Despite the current market challenges, Exxon remains optimistic about the future of lithium and its role in powering the transition to a greener future.
