ExxonMobil, LG Chem Agree on Lithium Supply Pact

Exxon Mobil and LG Chem have signed a non-binding memorandum of understanding for a multiyear agreement to supply up to 100,000 metric tons of lithium carbonate from ExxonMobil’s planned U.S. production project to LG Chem's new cathode plant in Tennessee. The facility, which began construction in December 2023, is anticipated to produce 60,000 tons of lithium annually and will be the largest of its kind in the U.S. Utilizing Direct Lithium Extraction technology, the venture aims to reduce carbon intensity significantly compared to traditional mining methods. However, the final investment decision is contingent upon establishing competitive regulatory frameworks and addressing royalty rate negotiations in Arkansas. This partnership marks a strategic pivot for Exxon Mobil towards the burgeoning electric vehicle battery supply chain. Both companies emphasize the importance of enhancing domestic mineral supply chains to support the growing EV market.