BAKU, Azerbaijan, November 20. Exxon Mobil Corporation and South Korea's LG Chem have announced a non-binding memorandum of understanding (MOU) for a multiyear offtake agreement of up to 100,000 metric tons of lithium carbonate, Trend reports.
The agreement envisions supplying lithium from ExxonMobil’s planned U.S.-based production project to LG Chem’s Tennessee cathode plant, projected to be the largest of its kind in the United States.
“America needs secure domestic supply of critical minerals like lithium,” said Dan Ammann, president of ExxonMobil Low Carbon Solutions. “ExxonMobil is proud to lead the way in establishing domestic lithium production, creating jobs, driving economic growth, and enhancing energy security here in the United States.”
LG Chem’s cathode facility, which began construction in December 2023, is expected to produce 60,000 tons annually and will serve as a key hub for both customer deliveries and raw material imports due to its strategic location.
“Building a lithium supply chain with ExxonMobil, one of the world’s largest energy companies, holds great significance,” noted Shin Hak-cheol, CEO of LG Chem. “We will continue to strengthen LG Chem’s competitiveness in the global supply chain for critical minerals.”
The planned production of Mobil™ Lithium will employ Direct Lithium Extraction (DLE) technology, which aligns with ExxonMobil’s expertise in subsurface exploration, drilling, and chemical processing. The approach aims to reduce environmental impacts significantly, with approximately two-thirds lower carbon intensity compared to traditional hard rock mining.
A final investment decision for the project will depend on establishing commercially competitive regulatory frameworks. If realized, this collaboration is set to enhance the domestic supply chain for critical minerals and support the growing U.S. electric vehicle battery market.