Exxon Mobil Corporation (NYSE:XOM) plans to invest over $200 million to expand advanced recycling operations at its Baytown and Beaumont facilities in Texas.
The expansions, set to begin in 2026, aim to boost recycling rates and reduce plastic waste in landfills.
The company also intends to add more units to achieve a global recycling capacity of 1 billion pounds annually by 2027.
ExxonMobil's investment will add 350 million pounds of advanced recycling capacity annually at its Baytown and Beaumont facilities, increasing its total capacity to 500 million pounds per year.
The company aims to develop additional projects across North America, Europe, and Asia, targeting 1 billion pounds of global recycling capacity by 2027.
This process complements traditional recycling by converting plastic waste into raw materials for products like fuels, lubricants, chemicals, and plastics, effectively addressing waste that mechanical recycling cannot process.
ExxonMobil's first advanced recycling facility in Baytown, launched in 2022, is among the largest in North America, processing over 70 million pounds of plastic waste as of October 2024.
Karen McKee, president of ExxonMobil Product Solutions, said, "At our Baytown site, we've proven advanced recycling works at scale, which gives us confidence in our ambition to provide the capacity to process more than 1 billion pounds of plastic per year around the world."
"The world's plastic waste challenge will be solved with innovation, collaboration, and supportive government policy to improve waste management and circularity."
Yesterday, the company inked a non-binding MOU for a multiyear agreement with LG Chem, a chemical company with a diversified business portfolio.
ExxonMobil will supply up to 100,000 metric tons of lithium carbonate from its planned U.S. project to LG Chem's upcoming cathode plant in Tennessee, which is set to be the largest in the U.S.
Investors can gain exposure to XOM via EA Series Trust Strive U.S. Energy ETF (NYSE:DRLL) and Vanguard Energy Index Fund ETF (NYSE:VDE).
Price Action: XOM shares are up 1.63% at $122.28 at the last check Thursday.
Photo: Del Henderson Jr. via Shutterstock
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