ExxonMobil has signed a non-binding agreement with SK On, manufacturer of batteries for electric vehicles, for the supply of lithium extracted from its project in Arkansas. This agreement could amount to 100,000 metric tons of lithium over several years.
A strategic partnership for lithium production
In November, ExxonMobil announced plans to produce lithium from brines pumped from Arkansas, a region rich in deposits of the metal. Lithium is crucial for electric vehicle batteries and other energy storage technologies. The collaboration with SK On marks an important step in strengthening lithium supply chains in the United States. The lithium extraction method proposed by ExxonMobil aims to be more efficient and less impactful on the environment than traditional mining. The lithium extracted will be converted into battery-grade material directly on site in Arkansas, reducing the carbon footprint associated with its production.
Impact on the EV battery industry
SK On, a subsidiary of SK Innovation, will use this lithium for its EV battery manufacturing operations in the USA. The company already has two plants in Georgia and plans to build four more in collaboration with Ford Motor Co. and Hyundai Motor Group. Once these facilities are operational after 2025, SK On should produce enough batteries to power around 1.7 million electric vehicles a year. This initiative not only supports U.S. energy and climate goals, but also contributes to the country’s energy security and job creation in the manufacturing sector. By securing a domestic supply of lithium, ExxonMobil and SK On aim to meet the growing demand for batteries for electric vehicles and other clean technologies.
Benefits and future prospects
The partnership between ExxonMobil and SK On demonstrates a long-term commitment to energy transition and decarbonization. By using advanced technologies such as direct lithium extraction, ExxonMobil demonstrates its ability to innovate and adapt to the needs of the modern market. This strategic collaboration also sends a strong signal to investors and industry players, underlining the growing importance of lithium in the global energy transition. ExxonMobil’s Arkansas lithium project aims to produce enough lithium for around one million EV batteries a year by 2030, making a significant contribution to the expansion of the electric vehicle market. With demand for lithium growing rapidly, this type of partnership is essential to secure the raw materials needed to manufacture new-generation batteries.
The agreement between ExxonMobil and SK On to supply lithium mined in Arkansas strengthens the EV battery supply chain in the United States, while supporting the country’s energy security and decarbonization objectives. This strategic collaboration could serve as a model for other partnerships in the renewable energy and clean technology industries.
