Exxon Mobil expands lithium bet with Tetra Technologies deal

Tetra Technologies

29/06/2023 24:20

By Ernest Scheyder
       June 28 (Reuters) - 
    Exxon Mobil  XOM.N  has agreed to develop more than 6,100
lithium-rich acres in Arkansas with Tetra Technologies Inc
 TTI.N , the second move this year by the oil giant for control
of assets needed to produce the electric vehicle battery metal. 
  
    Exxon's rapid expansion into the lithium sector comes amid
growing interest by traditional energy companies and others into
emerging technologies that aim to boost global supply of the
ultralight metal. 
    Tetra, which produces chemicals for water treatment and
recycling, earlier this week said it had signed an agreement
with a company known as Saltwerx to develop 6,138 acres of salty
brine deposits in Arkansas that are filled with lithium and
bromine, although it provided few additional details.
    Saltwerx is a subsidiary of Exxon, according to two people
familiar with the matter. Exxon acquired it earlier this year
when it bought a neighboring Arkansas parcel of 100,000 acres
from Galvanic Energy. Galvanic remains an independent, privately
held company and is not affiliated with Tetra or Exxon.
    Representatives for Tetra were not immediately available to
comment. Exxon declined to comment.
    Financial terms were not disclosed. Neither company provided
a production or development timeline, although Exxon will be
contributing about 2,000 acres and Tetra about 4,100 acres to
the partnership. Certain details still need to be finalized.
    By partnering with Exxon, Tetra gains a large partner with
capital to help it produce bromine, which is used in flame
retardants, from the acreage. Tetra currently buys bromine from
Lanxess  LXSG.DE  to produce a material used by Eos Energy
Enterprises  EOSE.O  to manufacture batteries.
    Exxon, meanwhile, gains access to yet another U.S. supply of
lithium as the country rapidly expands its EV supply chain. Both
companies plan to file an amended application to develop the
brine deposits later this year with Arkansas officials.
    Exxon would need to chose at least one direct lithium
extraction (DLE) technology to filter the metal from the
Arkansas brine, although such technologies are largely unproven
at commercial scale. Reuters reported earlier this month that
Exxon has held talks with International Battery Metals  IBAT.CD 
and EnergySource Minerals about licensing DLE technology. 
    Tetra said in November it has been investigating various DLE
technologies, but had not signed any agreements. 
    Tetra had previously agreed to lease more than 27,000 acres
in Arkansas to Standard Lithium  SLI.V  to produce lithium.
Standard has started preliminary work on development of that
project. 

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