If you can’t beat them, join ’em?

US fossil fuel giant Exxon, who made nearly $60B in 2022 profits from oil and gas, is investing in lithium mining and supply chains for the EV boom.

In recent weeks Exxon has been buying up lithium tenements in the deep south of the US, including in Arkansas where there are significant known reserves of the metal required for lithium-ion batteries and EV cars.

Exxon has spent hundreds of millions in securing lithium deposits and is now working to build upstream facilities to process the metal and build batteries.

In May Exxon paid some US$100M for 120,000 acres in the Smackover rock formation in southern Arkansas to the exploration company Galvanic Energy.

Analysis said saltwater brine from which the metal can be extracted is contained in the Smackover Formation, a subterranean geological feature that runs through South Arkansas and neighbouring states.

Now, the WSJ reports Exxon is investing in what will be the world’s largest lithium processing facility near Magnolia, AR.

The processing facility aims to be able to produce up to 100,000 metric tons of lithium annually, or 15% of current global production, according to The Wall Street Journal, producing some 6,000 jobs and requiring more than 1,600 trucks.

With the US looking for massive investment in electric cars and trucks over the coming years and a government mandate of 67% of new vehicles to be EV by 2032, Exxon has some serious work to do as oil consumption fades.