ExxonMobil and SK On sign MoU for U.S. lithium supply

ExxonMobil and SK On have signed a non-binding memorandum of understanding (MoU) to secure a multi-year supply agreement for up to 100,000 metric tons of Mobil™ Lithium. This collaboration is set to support SK On’s electric vehicle (EV) battery manufacturing operations in the United States, marking a significant step in building out the U.S. EV and battery supply chains.

Domestic Lithium Production: The lithium will be sourced from ExxonMobil’s first planned project in Arkansas, which aims to extract lithium from underground saltwater deposits and convert it into battery-grade material. This method is designed to be more efficient and environmentally friendly compared to traditional mining techniques.

Support for U.S. Manufacturing: This agreement is expected to bolster U.S. energy security, support domestic manufacturing jobs, and reduce carbon emissions. ExxonMobil’s planned production of Mobil™ Lithium will utilize its core capabilities in subsurface exploration, drilling, and chemical processing.

Expansion of SK On’s Operations: SK On operates two battery plants in Commerce, Georgia, and is constructing four additional plants in collaboration with Ford Motor Co. and Hyundai Motor Group. Post-2025, SK On’s annual production capacity in the U.S. is projected to reach more than 180 GWh, enough to power approximately 1.7 million EVs annually.

The demand for lithium is anticipated to surge due to its critical role in EVs, consumer electronics, energy storage systems, and other clean energy technologies. This agreement aligns with ExxonMobil’s goal to supply lithium for about one million EV batteries annually by 2030.

The project in Arkansas will use Direct Lithium Extraction (DLE) technology, which has been successfully piloted by ExxonMobil. This technology promises lower environmental impact and higher efficiency in lithium production.

“The world needs more lithium to support its emissions goals, and we’re doing our part to drive solutions forward in the United States,” said Dan Ammann, president of ExxonMobil Low Carbon Solutions.

Future prospects

Park Jong-jin, executive vice president of Strategic Procurement at SK On, highlighted the strategic importance of this collaboration in securing key battery raw materials and supporting the company’s growing U.S. manufacturing base.

“SK On has been working with global partners to secure key battery raw materials in a move to support our growing U.S. manufacturing base and lead electrification in the region,” said Park. “Through this partnership with ExxonMobil, we will continue strengthening battery supply chains in the U.S.”