Greg Greg Garland, CEO of Phillips 66, the fourth-largest US refiner, said on Monday that the company was considering broader action to develop battery assemblies for electric vehicles and storage systems to accelerate the transition from fossil fuels to renewable energy.
Phillips 66 derives most of its profits from oil refining, but the company has become one of the largest suppliers of graphite, a key component of electric vehicles. The company recently set up an "emerging energy" division to explore new markets for hydrogen and low-carbon fuels.
"the US refining business will shrink, not expand, in the future," Mr Garland said. "
Battery research and collaboration will no longer be limited to the small but lucrative materials business. Phillips 66's existing business, which supplies materials to companies that make graphite anodes for electric vehicle batteries, is worth more than $1 billion.
"We want to play a bigger role in the value chain," said Mark Lashier, the company's chief operating officer. We are still studying the entire value chain and how best to integrate them. "
Earlier this week, Phillips 66 invested $150 million for a 16% stake in Australia's Novonix, a company that processes refinery by-products into synthetic graphite for electric car batteries.
Earlier, the company also reached a technical agreement with the British company Faradion to develop materials for sodium ion batteries. Sodium ion battery is another kind of advanced battery used for energy storage and backup power supply.