Oil Giants Test Waters in Lithium Extraction Amid US Supply Chain Worries
The oil and gas industry is experimenting with lithium production, with several major companies investing hundreds of millions of dollars in extracting the battery metal from oilfield brines.
One such project is Equinor's Southwest Arkansas lithium project, a joint venture with Standard Lithium that aims to commercialize direct lithium extraction (DLE) from subsurface brine. The first phase of development was expected to reach a final investment decision last year but now targets approval by the end of this year.
According to Wambui Mutoru, asset manager for Equinor's project, these ventures 'have to be proved' and are not yet commercially viable. However, she believes they will achieve viability within 3-5 years.
The US government is providing financial support for new lithium projects to reduce the country's dependence on China, which dominates the global critical-minerals market. The US imports nearly three-quarters of its lithium-ion batteries from China, and a 2025 analysis found that reducing this reliance would be crucial for national security.