ExxonMobil (XOM) to Build Arkansas Facility in Lithium Quest
Exxon Mobil Corp XOM has intended to construct one of the largest lithium processing plants in Arkansas, with a capacity to produce 75K–100K metric tons of lithium annually, according to a report from The Wall Street Journal.
The company anticipates that the plant's production would be equivalent to around 15% of the finished lithium produced globally in the previous year.
According to the report, the massive project may be developed in stages, with modular trains built together or in separate locations near its future lithium production facilities in South Arkansas.
ExxonMobil is drilling for lithium instead of oil as it prepares for a future that will be less reliant on gasoline. The company is attempting to establish a presence in Arkansas which is considered to have lithium deposits, to manufacture the material and evaluate the viability of extraction technologies.
Companies are growing more confident in scaling up technology to extract lithium from the Smackover formation, a geologic trend that stretches from Texas to Florida. It is rich in saltwater brine and includes modest levels of lithium.
Zacks Rank & Key Picks
Exxon currently carries a Zack Rank #3 (Hold).
Some better-ranked stocks in the energy sector are Evolution Petroleum Corporation EPM, NGL Energy Partners LP NGL and Murphy USA MUSA. Evolution Petroleum currently sports a Zacks Rank #1 (Strong Buy), while NGL Energy Partners and Murphy USA carry a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Evolution Petroleum is an independent energy company. It was formed to acquire and develop oil and gas fields and apply both conventional and specialized technology to accelerate production, particularly in low-permeability reservoirs. EPM has witnessed an upward earnings estimate revision for 2023 and 2024 in the past 60 days.
NGL Energy Partners, headquartered in Tulsa, OK, is a limited partnership operating a vertically-integrated propane business with three operating segments — retail propane, wholesale supply and marketing and midstream. NGL has witnessed an upward earnings estimate revision for 2024 in the past 60 days.
Murphy USA operates stations close to Walmart supercenters and sells low-cost, high-volume fuel. This helps the company to get a lot more business than its competitors. Another significant competitive advantage for the firm is its access to product distribution centers and pipelines, which helps control costs in the intensely competitive retail sector. Over the past 30 days, MUSA has witnessed an upward earnings estimate revision for 2024.
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