The global lithium mining market is undergoing a remarkable transformation. Valued at USD 1.35 billion in 2023, it is forecast to reach USD 2.03 billion by 2032, growing at a CAGR of 4.6%. This growth is being fuelled by surging demand for electric vehicles, grid-scale energy storage and portable electronics. As governments and corporations accelerate the transition to low-carbon systems, lithium has become the cornerstone of modern energy storage and a vital mineral for the global economy.
Traditional oil & gas companies are moving into lithium extraction, signalling a convergence between sectors once considered distinct. This new frontier brings complex legal, regulatory and commercial challenges, and a growing need for specialist lawyers with deep expertise in both industries.
Energy Majors Entering the Mining Space
Several oil & gas supermajors are actively investing in lithium extraction, often through Direct Lithium Extraction (DLE) – a technology designed to produce lithium more efficiently and with a smaller environmental footprint than traditional evaporation methods. ExxonMobil plans to become a leading US lithium supplier by 2030 through its Smackover Formation Project in Arkansas. In addition, Equinor, Chevron and Occidental Petroleum have all announced lithium ventures of their own. Beyond the US, national oil companies such as Saudi Aramco, ADNOC and Argentina’s YPF are exploring DLE projects and strategic investments in lithium.
For many energy companies, this move is not entirely new territory. Decades ago, several oil majors operated mining divisions focused on coal, uranium and other energy-related minerals. Their re-entry into the mining sector signifies the evolution of the energy transition and further diversification of revenue streams.
Complexity
This convergence of energy and mining brings enormous potential, but also a wealth of legal complexities. The regulatory environments governing hydrocarbons and critical minerals differ significantly, and navigating these frameworks requires sophisticated legal expertise.
Energy companies entering the mining space must address novel risk profiles. DLE, while promising, remains an emerging technology that raises unique intellectual property, environmental and operational liability questions. The competitive nature of the lithium market has meant legal disputes are beginning to emerge between companies as seen in Standard Lithium’s challenge to ExxonMobil’s rights in the Smackover Formation.
Why Specialist Lawyers Are Essential
Corporate lawyers are needed to structure complex joint ventures between mining and energy companies. Project finance specialists must navigate new funding models that merge mining economics with energy-sector risk. Environmental and planning lawyers are essential to secure permits and manage ESG compliance in line with increasingly stringent sustainability standards.
As lithium becomes central to the next phase of the global energy economy, and oil & gas companies continue to expand into this space, the demand for specialist legal talent will only intensify. We specialise in recruiting the kind of lawyers that this evolving market needs. Our clients are global law firms and in-house legal departments that seek lawyers who are able to advise across the full energy value chain.
If you would like to discuss current opportunities with us, please do get in touch with us to arrange a confidential chat.
