Exxon Mobil and SK On Sign MOU for 100,000 Metric Tons of Lithium
Exxon Mobil has signed a non-binding memorandum of understanding to supply up to 100,000 metric tons of lithium to South Korean battery developer SK On from its proposed Arkansas lithium project. The international energy company announced the agreement on June 25.
"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, ExxonMobil's president for low carbon solutions, in a joint statement with SK On. "This collaboration with SK On demonstrates the leading role we play in the growing market for domestically sourced lithium, a market that's advancing energy security and climate objectives, as well as supporting American manufacturing."
The lithium supply will be delivered through a multiyear agreement, although the specific duration and start date of deliveries have not been disclosed.
SK On plans to use the lithium in its electric vehicle battery manufacturing operations in the US, which currently include two facilities in Georgia. The company is also building four additional battery plants in the US through joint ventures with automakers Ford and Hyundai, expected to be completed by the end of 2025. Once operational, these plants will provide SK On with a battery production capacity of over 180 GWh per year in the US.
"SK On has been working with global partners to secure key battery raw materials in a move to support our growing US manufacturing base and lead electrification in the region," said Park Jong-jin, SK On's executive vice president of strategic procurement, in the statement.
In late 2023, ExxonMobil announced plans to establish lithium production from underground saltwater brine resources in Arkansas by the end of the decade, with enough output to support the manufacture of 1 million EV batteries annually. The lithium product will be sold by a new subsidiary, Mobil Lithium.
Global demand for lithium chemicals is projected to reach 2.16 million metric tons on a lithium carbonate equivalent basis by 2028, up from about 870,000 metric tons in 2023, according to a June 25 report from S&P Global Market Intelligence. Supply is expected to lag behind this increased demand, with a market deficit of 31,000 metric tons forecast for 2028.
Platts, part of S&P Global Commodity Insights, assessed lithium carbonate CIF North Asia at $13,000 per metric ton on June 25, down from $14,000 per metric ton at the start of June.
