ExxonMobil (NYSE: XOM) and LG Chem have entered into a non-binding memorandum of understanding (MOU) for a multiyear supply agreement. Under the agreement, ExxonMobil will provide up to 100,000 metric tons of lithium carbonate from its planned U.S.-based project to LG Chem’s Tennessee cathode manufacturing facility. This plant, expected to be the largest of its kind in the U.S., began construction in December 2023 and will have a production capacity of 60,000 tons annually.
Advancing U.S. Lithium Production
“America needs secure domestic supply of critical minerals like lithium,” said Dan Ammann, President of ExxonMobil Low Carbon Solutions. “We’re proud to lead the way in domestic lithium production, supporting jobs, economic growth, and energy security.”
The collaboration will leverage ExxonMobil’s expertise in subsurface exploration and chemical processing, utilizing Direct Lithium Extraction (DLE) technology. This process offers a more sustainable alternative to hard rock mining, with a reduced carbon footprint and lower environmental impact.
Strengthening Supply Chains
Shin Hak-cheol, CEO of LG Chem, emphasized the partnership’s importance: “Building a lithium supply chain with ExxonMobil, one of the world’s largest energy companies, is highly significant. It strengthens LG Chem’s position in the global critical minerals market.”
The agreement underscores the strategic alignment between both companies in addressing the growing demand for electric vehicle (EV) batteries and sustainable materials.
Commitment to Sustainability
The planned lithium project aligns with ExxonMobil’s broader goals of lowering greenhouse gas emissions. DLE technology is expected to reduce carbon intensity by about two-thirds compared to conventional mining. ExxonMobil also aims to achieve net-zero emissions for Scope 1 and 2 operations by 2050, enhancing the appeal of this partnership for EV battery manufacturers.
