- LG Chem and ExxonMobil (NYSE:XOM) are announcing a non-binding memorandum of understanding for a multi-year lithium offtake agreement
- Exxon will supply up to 100,000 metric tons of lithium carbonate from an upcoming project in Arkansas for LG Chem’s cathode plant in Tennessee, which will be the largest of its kind in the country
- Exxon is one of the largest publicly traded international energy and petrochemical companies
- ExxonMobil stock has added 13.52 per cent year-over-year and 71.01 per cent since 2019
LG Chem and ExxonMobil (NYSE:XOM) are announcing a non-binding memorandum of understanding (MOU) for a multi-year lithium offtake agreement.
Exxon will supply up to 100,000 metric tons of lithium carbonate from an upcoming project in Arkansas for LG Chem’s cathode plant in Tennessee, which will be the largest of its kind in the country. LG Chem began construction of its cathode plant in December 2023 and expects it to reach 60,000 tons in annual production capacity.
Exxon’s lithium project will use direct lithium extraction technology to offer U.S. electric vehicle (EV) battery manufacturers a domestic supply option – at about one third the carbon intensity of hard rock mining – backed by its established expertise in subsurface exploration, drilling and chemical processing. The oil giant’s ultimate investment decision will depend on “commercially competitive regulatory frameworks,” according to Wednesday’s news release.
The MOU follows a similar 100,000-ton deal with SK On, a top EV battery developer, signed back in June, furthering Exxon’s goal of producing enough lithium by 2030 to manufacture 1 million EVs.
Leadership insights
“America needs secure domestic supply of critical minerals like lithium,” Dan Ammann, president of ExxonMobil Low-Carbon Solutions, said in a statement. “ExxonMobil is proud to lead the way in establishing domestic lithium production, creating jobs, driving economic growth and enhancing energy security here in the United States.”
“Building a lithium supply chain with ExxonMobil, one of the world’s largest energy companies, holds great significance,” added Shin Hak-cheol, chief executive officer of LG Chem. “We will continue to strengthen LG Chem’s competitiveness in the global supply chain for critical minerals.”
About LG Chem
South Korea-based LG Chem is a leading global chemical company with a portfolio spanning petrochemicals, advanced materials and life sciences. The company generated consolidated revenue of US$41.6 billion in 2023.
About ExxonMobil
Exxon is one of the largest publicly traded international energy and petrochemical companies. Its operations focus on upstream, product solutions and low-carbon solutions.
ExxonMobil stock (NYSE:XOM) last traded at US$118.63 per share. The stock has added 13.52 per cent year-over-year and 71.01 per cent since 2019.
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(Top photo of ExxonMobil’s first lithium rig conducting appraisal work in Arkansas: ExxonMobil)
