One of the largest oil and gas producers in the United States, Occidental Petroleum (NYSE: OXY), is forming a joint venture with a unit of Warren Buffett’s Berkshire Hathaway (NYSE: BRK.B) to produce battery-grade lithium from geothermal brine.
Des Moines-based BHE Renewables, part of the legendary investor’s conglomerate, plans to use direct lithium extraction technology in California’s Imperial Valley 250 km east of San Diego, Occidental said on Tuesday.
BHE Renewables operates 10 geothermal power plants in the valley that can process 190,000 litres of lithium-rich brine per minute to produce 345 megawatts of clean energy. The joint venture plans to build, own and operate commercial lithium production plants that could feed the surging electric vehicle (EV) battery market.
“By leveraging Occidental’s expertise in managing and processing brine in our oil and gas and chemicals businesses, combined with BHE Renewables’ deep knowledge in geothermal operations, we are uniquely positioned to advance a more sustainable form of lithium production,” Richard Jackson, president of U.S. onshore resources and carbon management at Occidental, said in the release.
Fossil fuel flip
Oil majors are investing in the electrification sector as governments in the U.S. and Europe establish programs to promote the broader use of EVs and reduce fossil-fuel consumption.
ExxonMobil (NYSE: XOM), is considering lithium production after buying tracts in Arkansas last year. Its Canadian unit, Imperial Oil (TSX: IMO) is working with E3 Lithium (TSXV: ETMC) to extract lithium from depleted oil well sites in Alberta.
Exxon Mobil has plans to start producing lithium from sub-surface wells by 2027, while European oil rivals BP (LSE: BP) and Shell (LSE: SHEL) have invested in EV charging stations as part of their energy transition strategies.
Be the first to comment on "Warren Buffett’s Berkshire partners with Occidental to extract lithium"