ExxonMobil (NYSE: XOM) has entered into a non-binding memorandum of understanding (MOU) with SK On, a prominent electric vehicle (EV) battery developer. This agreement paves the way for a potential multiyear offtake deal, securing up to 100,000 metric tons of MobilTM Lithium from ExxonMobil’s inaugural project in Arkansas. The lithium will be used by SK On in their U.S. EV battery manufacturing operations, aligning with ExxonMobil’s goal to supply lithium for about 1 million EV batteries annually by 2030 and bolster the U.S. EV supply chain.
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. ExxonMobil’s Arkansas project aims to extract lithium from underground saltwater deposits and convert it into battery-grade material onsite, striving for greater efficiency and reduced environmental impact compared to traditional hard rock mining.
Dan Ammann, President of ExxonMobil Low Carbon Solutions, stated, “The world needs more lithium to support its emissions goals, and we’re doing our part to drive solutions forward in the United States. This collaboration with SK On demonstrates the leading role we play in the growing market for domestically sourced lithium, advancing energy security and climate objectives, and supporting American manufacturing.”
MobilTM Lithium production will leverage ExxonMobil’s expertise in subsurface exploration, drilling, and chemical processing, providing U.S. EV battery manufacturers with a secure, lower-carbon lithium supply. ExxonMobil has successfully produced lithium carbonate from the Smackover formation in southern Arkansas using Direct Lithium Extraction (DLE) technology.
SK On, currently operating two battery plants in Commerce, Georgia, and constructing four more through joint ventures with Ford Motor Co. and Hyundai Motor Group, expects to reach an annual production capacity exceeding 180 GWh in the U.S. by 2025, sufficient to power approximately 1.7 million EVs annually.
Park Jong-jin, Executive Vice President of Strategic Procurement at SK On, commented, “SK On has been working with global partners to secure key battery raw materials to support our growing U.S. manufacturing base and lead electrification in the region. Through this partnership with ExxonMobil, we will continue strengthening battery supply chains in the U.S.”
