Exploring the Depths of Lithium: Big Oil’s New Frontier
British oil giants BP and Shell have traditionally invested in solar and wind energy projects. In contrast, their competitors have remained focused on oil drilling. This strategic divergence has led to varying financial outcomes, with ExxonMobil, a staunch supporter of traditional oil, surpassing the combined market value of BP and Shell. ExxonMobil’s stock has surged by 50% in the last five years, while Shell’s has increased by only 10% and BP’s has declined by 13%.
Despite its primary focus on oil, ExxonMobil is not ignoring the renewable energy sector. Instead of directly investing in renewable energy generation, the company is taking an indirect approach to the energy transition. Recently, ExxonMobil signed a preliminary agreement to supply lithium to SK On, a South Korean battery manufacturer. This move aligns with the company’s plan to invest a significant portion of its $20 billion low-carbon budget in lithium production. By 2030, ExxonMobil aims to produce enough lithium to power 1 million electric vehicles annually, viewing lithium as a lucrative investment opportunity.
2024-06-27 08:40:44
Source from www.economist.com
