Oil and gas majors are exploring new opportunities to make money beyond their core business of fossil fuels. The latest development is the move by industry giants like Exxon Mobil Corp. into the lithium extraction business. Instead of digging for lithium in mines, they are turning to oil field brine for a cheaper and more efficient method of extracting the valuable metal. Rio Tinto Group, the world's second-largest miner, is also seeking ways to capitalize on this growing market.
1. Oil and gas majors are exploring new opportunities beyond fossil fuels.
2. Exxon Mobil Corp. and Rio Tinto Group are entering the lithium extraction business.
3. The companies are using oil field brine and geothermal plants for cheaper and more efficient extraction methods.
4. The global demand for electric vehicles is driving the growth of the lithium market.
5. The move to diversify into lithium extraction poses challenges, including cost and environmental concerns.
Oil field brine is estimated to contain around 10 million metric tons of lithium, which is equivalent to approximately 70% of the world's current annual production.
largest mining company, has also joined the race to extract lithium from its geothermal plants. With the global demand for electric vehicles on the rise, these companies recognize the potential profits in the lithium market. By leveraging their existing infrastructure and expertise in resource extraction, they are capitalizing on this emerging sector and diversifying their portfolios. However, this move is not without its challenges. Extraction processes can be costly and environmentally taxing, raising concerns about sustainability and the impact on local ecosystems. Nonetheless, these oil-and-gas giants are willing to take on the risks in order to secure a stake in the growing lithium industry.