Big Oil Could Turn To Battery Production To Survive EV Revolution

As farfetched as it may sound, the battery powering EVs like thePorsche Taycanmay soon have materials procured from Big Oil.

Many would think that the rise of electric vehicles would be an existential threat to oil companies like Chevron Corp., but a recent report fromAutomotive Newsindicates that this isn't the case. Instead, it might even be profitable to fossil fuel conglomerates in the long run.

According to Chevron CEO Mike Wirth, the process of extracting lithium from the Earth isn't far off from extracting oil and gas, and their "core capabilities" might be transferrable to digging up the element crucial for EV batteries. This allows the company to join the growing EV industry in the future.

Wirth disclosed no specifics for this plan for now. But interestingly, Exxon Mobil Corp. CEO Darren Woods likewise mentioned in July that the Texas-based multinational oil company is also exploring lithium production -despite its anti-EV rhetoricdisplayed in a recent TV ad.

Over the other side of the Atlantic, European oil companies aren't even considering lithium. Instead, they focus on transitional energy sources like wind and solar power.

Chevron, in turn, has previously declared that significant wind and solar projects don't benefit the company. These offer low investment returns, and competition in these areas is too high. Instead, they are focusing on carbon capture,hydrogen fuel, and, more recently, lithium.