ExxonMobil and LG Chem have signed a non-binding memorandum of understanding (MOU) for a multi-year offtake arrangement, potentially covering up to 100,000t of lithium carbonate.
Lithium carbonate will be provided by ExxonMobil's planned project in the US to LG Chem's cathode plant in Tennessee.
ExxonMobil Low Carbon Solutions president Dan Ammann said: “America needs secure domestic supply of critical minerals like lithium.
“ExxonMobil is proud to lead the way in establishing domestic lithium production, creating jobs, driving economic growth and enhancing energy security here in the US.”
LG Chem's Tennessee cathode plant, which broke ground in December 2023, is set to be the “largest” in the US, with an annual production capacity of 60,000t.
The plant's strategic location offers geographic accessibility, which benefits both customer deliveries and raw material imports.
The final investment decision for the plant will depend on various factors including the establishment of commercially competitive regulatory frameworks.
The planned production of Mobil Lithium will utilise direct lithium extraction (DLE) technology, which aligns with ExxonMobil's expertise in subsurface exploration, drilling and chemical processing.
This technology is expected to offer US electric vehicle (EV) battery manufacturers a domestically extracted and processed lithium supply option, with “substantially lower environmental impacts”.
Notably, it is projected to have approximately two-thirds less carbon intensity compared with hard rock mining, thereby supporting more sustainable manufacturing practices within the industry, ExxonMobil stated.
LG Chem CEO Shin Hak-cheol said: “Building a lithium supply chain with ExxonMobil, one of the world’s largest energy companies, holds great significance.
“We will continue to strengthen LG Chem’s competitiveness in the global supply chain for critical minerals.”
In August last year, ExxonMobil reportedly held talks with major automakers including Tesla, Ford and Volkswagen to develop lithium supply chains as part of its push into the EV battery metal market.
