Exxon's rapid expansion into the lithium sector comes amid
growing interest by traditional energy companies and others into emerging
technologies that aim to boost global supply of the ultralight metal.
Tetra, which produces chemicals for water treatment and
recycling, earlier this week said it had signed an agreement with a company
known as Saltwerx to develop 6,138 acres of salty brine deposits in Arkansas
that are filled with lithium and bromine, although it provided few additional
details.
Saltwerx is a subsidiary of Exxon, according to two people
familiar with the matter. Exxon acquired it earlier this year when it bought a
neighboring Arkansas parcel of 100,000 acres from Galvanic Energy. Galvanic remains
an independent, privately held company and is not affiliated with Tetra or
Exxon.
Representatives for Tetra were not immediately available to
comment. Exxon declined to comment.
Financial terms were not disclosed. Neither company provided
a production or development timeline, although Exxon will be contributing about
2,000 acres and Tetra about 4,100 acres to the partnership. Certain details
still need to be finalized.
By partnering with Exxon, Tetra gains a large partner with
capital to help it produce bromine, which is used in flame retardants, from the
acreage. Tetra currently buys bromine from Lanxess (LXSG.DE) to produce a
material used by Eos Energy Enterprises (EOSE.O) to manufacture batteries.
Exxon, meanwhile, gains access to yet another U.S. supply of
lithium as the country rapidly expands its EV supply chain. Both companies plan
to file an amended application to develop the brine deposits later this year
with Arkansas officials.
Exxon would need to chose at least one direct lithium
extraction (DLE) technology to filter the metal from the Arkansas brine,
although such technologies are largely unproven at commercial scale. Reuters
reported earlier this month that Exxon has held talks with International Battery
Metals (IBAT.CD) and EnergySource Minerals about licensing DLE technology.
Tetra said in November it has been investigating various DLE
technologies, but had not signed any agreements.
Tetra had previously agreed to lease more than 27,000 acres
in Arkansas to Standard Lithium (SLI.V) to produce lithium. Standard has
started preliminary work on development of that project. -Reuters
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