US supermajor ExxonMobil has officially entered the lithium race after it announced it will drill its first well to extract the coveted battery raw material and set up lithium supply capacity in the US.

The company said on Monday it aims to become “a leading producer of lithium”, with first output expected in 2027.

ExxonMobil first made its first step in the lithium mining space earlier this year when it obtained rights over 120,000 acres of lithium-bearing areas of the Smackover formation, in Arkansas.