SK On, a leading South Korean EV battery manufacturer, has entered into a non-binding agreement with ExxonMobil to source lithium from ExxonMobil's upcoming lithium extraction project in Arkansas.
The memorandum of understanding (MOU) sets the stage for a potential multiyear supply agreement, aiming to secure up to 100,000 metric tons of lithium. This partnership is pivotal for SK On's US operations, complementing its existing facilities in Georgia and ongoing collaborations to expand production capacity with automotive partners like Hyundai, Volkswagen, and Ford.
ExxonMobil's initiative in southern Arkansas marks a significant development, utilizing its access to 120,000 acres within the lithium-rich Smackover Formation.
The project focuses on extracting lithium from underground brine deposits, with onsite processing to produce high-grade material suitable for battery production. This method is anticipated to offer operational efficiencies and reduced environmental impact compared to conventional hard rock mining methods.
The agreement supports ExxonMobil's strategic objective to supply lithium for an estimated 1 million EV batteries annually by 2030, with initial production slated to commence in 2027.
By partnering with SK On, ExxonMobil strengthens its position in the evolving EV supply chain landscape, contributing to efforts aimed at ensuring a stable and sustainable source of critical minerals necessary for the electrification of transportation.
