ExxonMobil, SK On ink non-binding agreement for the supply of Mobil Lithium

ExxonMobil has signed a non-binding memorandum of understanding with South Korean EV battery manufacturer, SK On, to secure a multiyear offtake agreement to supply up to 100,000 metric tons of Mobil Lithium.

In an announcement made on Tuesday (June 25), ExxonMobil said it will source the lithium from its lithium well in Arkansas for which the company acquired the rights to 120,000 gross acres of the Smackover formation in Southern Arkansas – considered to hold significant lithium deposits. For SK On, this deal opens up opportunities to secure US-produced lithium and strengthen its US battery supply chain. 

"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, President of ExxonMobil Low Carbon Solutions. "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 South Korean battery major has been growing its US battery manufacturing base over the past few years has already and already has two operational battery plants in the U.S. and is currently developing four more through joint ventures with major auto companies. SK On's plan for expanding its production capacity in the US is estimated to reach more than 180 GWh after 2025 – enough to power 1.7 million EVs a year.

"SK On has been working with global partners to secure key battery raw materials in a move to support our growing U.S. manufacturing base and lead electrification in the region," said Park Jong-jin, Executive Vice President of Strategic Procurement at SK On.

"Through this partnership with ExxonMobil, we will continue strengthening battery supply chains in the U.S."