Exxon Mobil Corporation (NYSE: XOM) and LG Chem have signed a non-binding memorandum of understanding (MOU) for a multiyear offtake agreement for up to 100,000 metric tons of lithium carbonate. The lithium will be supplied from ExxonMobil’s planned project in the U.S. to LG Chem’s cathode plant in Tennessee, which LG Chem expects to be the largest of its kind in the U.S.
ExxonMobil and LG Chem have signed an MOU for a multiyear offtake agreement for up to 100,000 tons of lithium carbonate.
Sourced from ExxonMobil’s planned US project, the lithium will support LG Chem’s Tennessee cathode plant.
The initiative boosts domestic lithium supply, promotes energy security, and leverages eco-friendly Direct Lithium Extraction technology.
“America needs secure domestic supply of critical minerals like lithium,” said Dan Ammann, president of ExxonMobil Low Carbon Solutions. “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.”
LG Chem’s Tennessee cathode plant broke ground in December 2023 and is expected to have an annual production capacity of 60,000 tons. The plant offers excellent geographic accessibility for both customer deliveries and raw material imports.
“Building a lithium supply chain with ExxonMobil, one of the world’s largest energy companies, holds great significance,” stated Shin Hak-cheol, CEO of LG Chem. “We will continue to strengthen LG Chem’s competitiveness in the global supply chain for critical minerals.”
Final investment decision will be subject to various factors including the establishment of commercially competitive regulatory frameworks. The planned production of MobilTM Lithium will utilize Direct Lithium Extraction (DLE) technology, aligning seamlessly with ExxonMobil’s core competencies in subsurface exploration, drilling, and chemical processing. This approach offers U.S. 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.
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Fibre2Fashion News Desk (HU)
