Exxon Mobil Corp (NYSE: XOM) shares are trading slightly higher Thursday. New reports indicate the company plans to make a big push into the lithium market.
What To Know: According to a Wall Street Journal report, Exxon Mobil is set to begin mining lithium, a key part of electric vehicle battery production.
The oil and gas giant is reportedly planning to build one of the largest lithium processing facilities in the world in Arkansas. The location is expected to have the capacity to produce between 75,000 and 100,000 metric tons of lithium per year, people familiar with the matter said.
Reports from earlier this year indicated that Exxon Mobil purchased 120,000 acres in southern Arkansas for more than $100 million. The seller estimated that the property could contain enough lithium to power approximately 50 million electric vehicles.
Multiple other companies chasing lithium are reportedly planning to build facilities in the area as well. The land is rich with saltwater brine, which contains small amounts of lithium, but requires advanced technologies to mine.
The report indicates Exxon Mobil believes it has the expertise to make it happen and become a low-cost lithium supplier. According to people familiar with the matter, the company has already held talks with battery manufacturers and EV companies.
Exxon Mobil is set to report second-quarter financial results on July 28.
XOM Price Action: Exxon Mobil shares were up 1.29% at $102.88 at the time of publication, according to Benzinga Pro.