(NewsNation) — Exxon Mobil plans to become a “leading producer” of lithium for electric vehicles and will begin drilling for the critical material in southern Arkansas, the company announced Monday.

Exxon said it expects to start lithium production as soon as 2027. By 2030, the company said it aims to produce enough lithium to supply the manufacturing needs of “well over” a million EVs per year.

The announcement comes after the oil and gas giant acquired the rights to 120,000 gross acres of Arkansas’ Smackover Formation earlier this year. The formation is considered one of the most prolific lithium resources of its type in North America.

“Lithium is essential to the energy transition, and Exxon Mobil has a leading role to play in paving the way for electrification,” Dan Ammann, president of Exxon Mobil Low Carbon Solutions, said in a release. 

Exxon didn’t say how much money is being invested in the project, but at a news conference, Arkansas Gov. Sarah Huckabee Sanders said it has the “potential to transform our state.”

The company said it plans to use conventional oil and gas drilling methods to access lithium-rich saltwater from reservoirs underground. From there, it will use “direct lithium extraction” technology to separate lithium from the saltwater before converting it to battery-grade material.

Despite having some of the largest lithium deposits in the world, the U.S. has heavily relied on imports from Argentina and Chile. As of today, Nevada is the only U.S. state producing lithium.

But with more people buying electric vehicles, worldwide demand for the chemical element used to make lithium-ion batteries is expected to grow sixfold from 2020 to 2030.

Right now, China continues to dominate the supply chain for lithium-ion batteries, but automakers have responded by investing billions in U.S. plants.

Polling suggests those investments can’t come soon enough. Nearly 40% of Americans are considering buying an EV for their next car, according to a recent survey.