Magnus
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- Jun 22, 2020
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MAGNOLIA, Ark.— These days, companies in the area aren’t looking to find more oil—they are instead prospecting for lithium, a metal that is increasingly prized around the world as an essential ingredient in electric-vehicle batteries.
If the U.S. is to ease its dependence for lithium on other countries such as China, it may need this quiet corner of southwest Arkansas to lead the way.
Exxon Mobil XOM 1.76%increase; green up pointing triangle, a new player in the hunt for U.S. lithium, is planning to build one of the world’s largest lithium processing facilities not far from Magnolia, with a capacity to produce 75,000 to 100,000 metric tons of lithium a year, according to people familiar with the matter.
At that scale, it would equate to about 15% of all finished lithium produced globally last year, according to one analyst.
The Wall Street Journal reported in May that Exxon purchased 120,000 gross acres in the area for a price tag of more than $100 million. A consultant for the seller had estimated the prospect could have the equivalent of 4 million tons of lithium carbonate equivalent, enough to power 50 million EVs.
The giant project could be built in stages, with modular trains constructed together or in separate locations near its future lithium production sites in South Arkansas, people familiar with the matter said.
The attraction is what is known as the Smackover formation, a geologic trend that runs from Texas to Florida and is rich with saltwater brine, which once bedeviled companies drilling for oil. That brine also contains small amounts of lithium, and the companies are increasingly optimistic they can scale up technologies to extract it.
Exxon, which is generally bullish about the future of oil and natural gas, is also preparing for a future less dependent on gasoline. Last year, it projected light-duty vehicle demand for internal combustion engine fuels could peak by 2025, while EVs, hybrids and vehicles powered by fuel cells could grow to more than 50% of new car sales by 2050.
www.wsj.com
Good to see companies like Exxon are seeing the writing on the wall for gasoline and moving on to newer ventures. Not just a new source for Lithium but also thousands of new jobs. Win/Win!
If the U.S. is to ease its dependence for lithium on other countries such as China, it may need this quiet corner of southwest Arkansas to lead the way.
Exxon Mobil XOM 1.76%increase; green up pointing triangle, a new player in the hunt for U.S. lithium, is planning to build one of the world’s largest lithium processing facilities not far from Magnolia, with a capacity to produce 75,000 to 100,000 metric tons of lithium a year, according to people familiar with the matter.
At that scale, it would equate to about 15% of all finished lithium produced globally last year, according to one analyst.
The Wall Street Journal reported in May that Exxon purchased 120,000 gross acres in the area for a price tag of more than $100 million. A consultant for the seller had estimated the prospect could have the equivalent of 4 million tons of lithium carbonate equivalent, enough to power 50 million EVs.
The giant project could be built in stages, with modular trains constructed together or in separate locations near its future lithium production sites in South Arkansas, people familiar with the matter said.
The attraction is what is known as the Smackover formation, a geologic trend that runs from Texas to Florida and is rich with saltwater brine, which once bedeviled companies drilling for oil. That brine also contains small amounts of lithium, and the companies are increasingly optimistic they can scale up technologies to extract it.
Exxon, which is generally bullish about the future of oil and natural gas, is also preparing for a future less dependent on gasoline. Last year, it projected light-duty vehicle demand for internal combustion engine fuels could peak by 2025, while EVs, hybrids and vehicles powered by fuel cells could grow to more than 50% of new car sales by 2050.
WSJ News Exclusive | This Arkansas Town Could Become the Epicenter of a U.S. Lithium Boom
Near the quiet town of Magnolia, companies including Exxon Mobil are working out how to extract lithium from brine water to help power electric vehicles.
www.wsj.com
Good to see companies like Exxon are seeing the writing on the wall for gasoline and moving on to newer ventures. Not just a new source for Lithium but also thousands of new jobs. Win/Win!
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. Though probably the company will come up with some way that still pisses a lot of people off but makes it an ultimately more ethical way of mining than is used elsewhere in the world. I hope.
