U.S. oil goliath ExxonMobil (NYSE: XOM) announced on Monday its plans to become a leading producer of lithium, a key component of the lithium-ion batteries that power electric vehicles (EVs).

Exxon's entrance into the lithium production space isn't a surprise. In early 2023, the company acquired the rights to 120,000 gross acres of the Smackover Formation in southern Arkansas, which is considered to contain one of the largest lithium-rich brine (salty water) deposits in North America.

The company has begun drilling in the first phase of its Arkansas project, it said in Monday's press release. Exxon is leveraging its deep experience in its core business, as it's using conventional oil and gas drilling methods to access the lithium-rich brine from reservoirs about 10,000 feet underground.

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Source Fool.com