Exxon Mobil (NYSE:XOM) has defeated an attempt by Occidental Petroleum (OXY) to block its production rights in Arkansas' Smackover Formation, the Financial Times reported Wednesday, winning control over one of the largest known lithium deposits in the U.S. and marking a potentially pivotal moment in the race to secure domestic supply chains for electric vehicle batteries and defense technologies.
The Arkansas Oil and Gas Commission's approval grants Exxon's (NYSE:XOM) Saltwerx subsidiary the right to develop a 56K-acre lithium production unit in the formation, dismissing the objections of Occidental (OXY), which argued it owned mineral rights in the area and had plans to produce lithium.
Saltwerx intends to begin producing lithium in 2027, and has forecast it can generate $27M in annual profit from producing 165K bbl/day of lithium brine.
A U.S. Geological Survey study published in October estimated the southwest Arkansas portion of the Smackover could contain as much as 19M metric tons of lithium reserves; if commercially recoverable, it would meet the projected 2030 global demand for lithium in car batteries nine times over, USGS said.
The commission also approved an application by a joint venture between Standard Lithium and Equinor to establish a rival production unit in southwest Arkansas, a project the Trump administration has selected as one of 10 critical minerals projects it would prioritize.
https://www.msn.com/en-us/money/general/exxon-wins-critical-lithium-rights-in-arkansas-gaining-edge-over-occidental-in-regulatory-battle/ar-AA1Dznmq