ExxonMobil (NYSE: XOM) believes the world will need oil and gas for a long, long time. That drives its current investment strategy of investing billions of dollars annually to develop new oil and gas supplies.

However, Exxon can see the writing on the proverbial wall. It knows the world is slowly transitioning to lower-carbon energy, including electric vehicles (EVs) powered by renewables. That's leading the energy company to invest more money into transitioning its business for a lower-carbon world. It recently unveiled bold plans to become a leading lithium producer by 2030. Lithium is a key ingredient in EV batteries.

ExxonMobil has already started working on the first phase of a lithium-production project in Arkansas, which holds vast lithium resources. It expects that project to start production by 2027. It will likely be the first of many for the energy giant, which is evaluating other lithium opportunities worldwide. The company aims to produce enough lithium by 2030 to power more than 1 million EVs annually. It will sell its lithium product under the Mobil lithium brand.

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Source Fool.com