Recent news that oil major ExxonMobil (NYSE: XOM) purchased drilling rights in the potentially lithium-rich Smackover formulation in Arkansas is more symbolic than game changing right now. Still, symbols matter, and the move highlights an investment case for exploration- and production-focused companies like ExxonMobil and (NYSE: CVX) that goes beyond their role as fossil fuel providers.

Here's why investors should closely examine what's going on in the sector. 

The company's investment in lithium assets, although tiny in terms ExxonMobil's existing assets, matters because of lithium's use in electric vehicle (EV) batteries. Investing in the metal is often championed by speculators focused on the clean-energy transition theme. It's an argument that has led investors to pay high multiples for clean energy stocks and relatively low multiples to traditional energy companies.

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Source Fool.com