LG Chem Ltd, the chemicals unit of South Korea’s LG Group, announced this week it had signed an agreement with Exxon Mobil Corporation of the US to source up to 100,000 tons of lithium carbonate for use in electric vehicle (EV) batteries.
Under the non-binding memorandum of understanding (MOU), Exxon Mobil will supply the lithium carbonate from its project in the US state of Arkansas over multiple years to LG Chem’s cathode plant in Tennessee, which the company expects will be the largest of its kind in the US.
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LG Chem began building the plant in December 2023 with a designated production capacity of 60,000 tons of battery cathode materials per year.
LG Chem’s CEO, Shin Hak-cheol, said in a statement: “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.”
ExxonMobil said it is able to offer US EV battery manufacturers a “domestically-extracted and processed lithium supply option which is expected to have substantially lower environmental impacts, including approximately two-thirds less carbon intensity than hard rock mining.”
Dan Ammann, president of ExxonMobil Low Carbon Solutions, added: “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.”
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By GlobalDataEarlier this year, ExxonMobil also held talks with South Korean EV battery manufacturer SK On Ltd to supply lithium to its US battery plants.
