As Exxon eyes lithium, crucial decision looms on filtration technology

International Battery Metals

14/11/2023 22:43

By Ernest Scheyder
       LOS ANGELES, Nov 14 (Reuters) - Exxon Mobil  XOM.N  has
yet to decide which lithium filtration technology it will deploy
as part of its aggressive plans to become one of the world's top
producers of the metal used to make electric vehicle (EV)
batteries, an executive said on Tuesday.    
    On Monday, the oil giant unveiled its long-awaited lithium
strategy and said it aims to filter the ultralight metal from
reservoirs about 10,000 feet beneath the U.S. state of Arkansas.
Reuters first reported the news last weekend. 
    Exxon's expansion into the sector will rely on one or more
of a so-far unproven fleet of direct lithium extraction (DLE)
technologies that Eramet  ERMT.PA , Sunresin  300487.SZ , Rio
Tinto  RIO.AX  and others are working to commercialize.
    Choosing which DLE technology to license will be a crucial
decision upon which Exxon's production of the battery metal will
rely. The company has held talks with a range of DLE technology
providers, including International Battery Metals  IBAT.CD  and
privately held EnergySource Minerals.     
    "We haven't chosen a (DLE) company yet. We're in the process
of evaluating a number of companies," Patrick Howarth, Exxon's
global product manager for lithium, said in an interview on the
sidelines of the Benchmark Week 2023 strategic minerals
conference in Los Angeles. 
    The company will provide details on its DLE process once it
formally decides to proceed with its lithium project, a
technical step known as formal investment decision, he said. He
declined to be more specific on timing.
    Even though it has yet to pick a DLE technology, Exxon is
confident it can start producing lithium by 2027 on 120,000
acres in Arkansas that it acquired earlier this year, Howarth
said. 
    "What we've seen as we've looked at a number of the (DLE)
technology providers is pretty consistent abilities on the brine
that we've got within Arkansas to extract lithium," he said. 
    Because it not yet chosen a DLE technology, Exxon also has
not yet forecast how much lithium it ultimately aims to produce.
The company is drilling test wells across Arkansas to study the
underground brine reservoir.
    "From there, we'll be able to come back with a more fulsome
number about production ambitions," Howarth said.
    Separately, Exxon has a lithium partnership with Tetra
Technologies  TTI.N  to develop a smaller parcel in Arkansas
that is expected to be producing 10,000 metric tons of lithium
per year by 2026. 
    Exxon is also studying where else in the world it could
produce lithium, Howarth said.     

 (Reporting by Ernest Scheyder; Editing by David Gregorio)
 ((ernest.scheyder@thomsonreuters.com; Twitter: @ErnestScheyder;
+1-713-210-8512; Reuters Messaging:
ernest.scheyder.thomsonreuters.com@reuters.net))