ExxonMobil’s Unconventional Approach to the Energy Transition: Investing in Lithium for Electric Vehicles rather than Renewable Energy Generation

The UK-based oil giants BP and Shell have been investing in solar and wind energy projects for some time, while their competitors ExxonMobil has primarily focused on oil drilling. Investors have well-received this approach, with the combined value of BP and Shell exceeding that of ExxonMobil by $510 billion. While ExxonMobil does have an interest in renewable energy, it has taken a different approach compared to its competitors. Instead of investing directly in renewable energy generation, the company has opted to make an indirect bet on the energy transition by supplying lithium to manufacturers of electric vehicles produced by Ford and Hyundai. By 2030, ExxonMobil aims to produce enough lithium to supply 1 million electric vehicles per year and views it as a “high-return” opportunity for the company.