Riding the Electric Vehicle Boom... Global Oil and Gas Companies Mining 'White Oil'

ExxonMobil and Occidental Invest in Equinor Lithium
Diversifying Business in Preparation for Electric Vehicle Transition

Global oil and gas companies are jumping into the race to secure lithium, known as 'white oil.' As the adoption of electric vehicles accelerates, fossil fuel companies are laying the groundwork to diversify their business portfolios.

Global oil and gas companies are entering the race to secure lithium, known as "white oil." Major oil companies such as ExxonMobil, Occidental Petroleum, and Equinor are diversifying their business portfolios by investing in lithium mining projects in line with the carbon neutrality and electric vehicle transition trends.
[Photo by AP Yonhap News]

According to major foreign media on the 25th (local time), leading oil companies such as ExxonMobil, SLB, Occidental Petroleum, and Equinor are investing in lithium mining projects.

ExxonMobil acquired lithium mining rights in the Smackover area of Arkansas, USA, with a $100 million investment. Equinor acquired shares in Lithium de France, a lithium development company, in 2021, and Occidental co-owns the lithium technology group Terralithium. Chevron's CEO has recently expressed ongoing interest in lithium.

The lithium mining boom among major oil and gas giants is closely linked to carbon neutrality movements centered in the West, including the United States and Europe. The European Union (EU) has decided to ban the sale of internal combustion engine vehicles starting in 2035 to reduce carbon emissions. The U.S. Biden administration is encouraging the transition to electric vehicles through the Inflation Reduction Act (IRA), and some states like New York and California will ban the sale of new internal combustion engine vehicles from 2035. As the internal combustion engine vehicle market shrinks in the mid to long term, reducing oil demand becomes inevitable, prompting fossil fuel companies to diversify their business portfolios toward electric vehicles.

Argentina lithium production site Catamarca
Photo by Reuters Yonhap News

Oil companies are also intensifying efforts to develop lithium technologies. The oil industry is actively working to commercialize Direct Lithium Extraction (DLE), a method that extracts lithium directly from underground brine. Several companies owned by Imperial Oil and ExxonMobil are participating in DLE projects in Alberta, Canada.

This lithium development boom is also seen positively as it reduces dependence on China, which accounts for one-third of this market.

Brian Menell, CEO of TechMet, a mining investment company, said, "Many oil and gas companies are investing significant time and attention to become major players in the lithium sector," calling it "a natural evolution for oil companies."

This content was produced with the assistance of AI translation services.