December 12, 2024: Exxon Mobil Corporation and LG Chem announced mid-November, they had signed a non-binding memorandum of understanding for a multiyear offtake agreement for up to 100,000 tonnes of lithium carbonate.

The lithium will be supplied from ExxonMobil’s planned project in the US to LG Chem’s cathode plant in Tennessee. LG Chem says it expects to be the largest of its kind in the U.S.

LG Chem’s Tennessee cathode plant broke ground in December 2023 and the firm says “it is expected to have an annual production capacity of 60,000 tonnes. The plant offers excellent geographic accessibility for both customer deliveries and raw material imports.”

America needs to secure a domestic supply of critical minerals such as lithium. ExxonMobil said it was proud to lead the way in establishing domestic lithium production, creating jobs, driving economic growth, and enhancing energy security here in the US.

“Building a lithium supply chain with ExxonMobil, one of the world’s largest energy companies, holds great significance,” said Shin Hak-cheol, CEO of LG Chem. “We will continue to strengthen LG Chem’s competitiveness in the global supply chain for critical minerals.”

A final investment decision will be subject to various factors including the establishment of commercially competitive regulatory frameworks. “The planned production of Mobil Lithium will utilize direct lithium extraction technology, aligning seamlessly with ExxonMobil’s core competencies in subsurface exploration, drilling, and chemical processing.

This approach offers Us EV battery manufacturers a domestically extracted and processed lithium supply option which could have substantially lower environmental impacts, including approximately two-thirds less carbon intensity than hard rock mining.