Ilphated

Are Oil and Gas Companies Researching New Battery Technologies?

When you think of oil and gas giants like ExxonMobil, BP, or Shell, the first thing that comes to mind probably isn’t batteries. But today, these companies are actively investing in and researching battery technologies—not just as a side hustle, but as part of their long-term survival strategy in a world shifting toward clean energy.

Let’s break down what’s happening behind the scenes.

From Oilfields to Lithium Mines

One of the biggest plays is in direct lithium extraction (DLE)—pulling lithium from oilfield brines. This is a natural move, since oil companies already know how to handle brines and subsurface chemistry.

ExxonMobil has started drilling in Arkansas to extract lithium from brine, with a preliminary deal signed with South Korean battery maker SK On.

Occidental Petroleum and Standard Lithium are exploring similar opportunities, looking to turn old oilfield infrastructure into lithium hubs.

Lithium is the lifeblood of EV batteries, and these companies want to control its supply chain.

Reinventing Extraction Tech

Chevron Technology Ventures has backed ElectraLith, a startup working on a new electrodialysis process that produces battery-grade lithium with fewer chemicals and less water. That’s big, since today’s lithium refining is resource-intensive and heavily tied to China.

Batteries on the Oilfield Itself

It’s not just about EVs. Even oilfield operations are going electric:

Clean Rig Power recently introduced a battery-powered well-service rig prototype. It does the same job as diesel-powered rigs but with less noise, fewer emissions, and greater efficiency.

EV Charging and Battery Ventures

Oil majors also see themselves powering the electric highway:

Shell is investing in EV charging stations and experimenting with battery-swapping tech in China through a partnership with Nio.

BP is building a battery R&D center in the UK, targeting EV decarbonization and advanced battery fluids.

TotalEnergies owns Saft, a battery manufacturer, and has launched a joint venture with Stellantis to create EV batteries in Europe.

Corporate Venture Bets

Oil companies aren’t just building their own solutions—they’re investing heavily in startups:

Shell, BP, TotalEnergies, and Eni have all made strategic bets on energy storage startups, carbon-to-battery concepts, and home energy systems.

These venture arms allow them to buy into innovation while hedging against disruption.

The Big Picture

The oil and gas industry isn’t giving up on fossil fuels anytime soon. But they’re also not blind to the future. By getting into batteries—whether through lithium, R&D, EV infrastructure, or electrified rigs—they’re ensuring they have a stake in whatever powers the next century.

It’s less about abandoning oil and more about owning the energy transition.

Sources:

FT – How the US plans to break China’s stranglehold on lithium

WSJ – ElectraLith Raises $17 Million

MRT – Battery-powered well service rig

EmailURL