ExxonMobil Inks Non-Binding Lithium Supply Agreement with LG Chem

ExxonMobil Corporation and LG Chem have entered into a non-binding memorandum of understanding (MOU) for a multi-year offtake agreement to supply up to 100,000 metric tons of lithium carbonate. The lithium will be sourced from ExxonMobil’s proposed U.S. project and delivered to LG Chem’s cathode plant in Tennessee, which is expected to become the largest facility of its kind in the U.S.

Dan Ammann, President of ExxonMobil’s Low Carbon Solutions, emphasized the importance of securing a domestic supply of critical minerals like lithium, noting that ExxonMobil is committed to driving economic growth, creating jobs, and enhancing energy security in the U.S. "America needs secure domestic supply of critical minerals like lithium. ExxonMobil is proud to lead the way in establishing domestic lithium production," Ammann said.

Shin Hak-cheol, CEO of LG Chem, also highlighted the strategic importance of the partnership, stating, "Building a lithium supply chain with ExxonMobil, one of the world’s largest energy companies, holds great significance. We will continue to strengthen LG Chem’s competitiveness in the global supply chain for critical minerals."

The final investment decision on the lithium project will depend on several factors, including the establishment of commercially competitive regulatory frameworks. ExxonMobil plans to utilize its Direct Lithium Extraction (DLE) technology for the project, which aligns with its core expertise in subsurface exploration, drilling, and chemical processing. This innovative approach will offer U.S. electric vehicle (EV) battery manufacturers a domestically sourced and processed lithium supply.

The use of DLE technology is expected to significantly reduce environmental impacts compared to traditional mining methods, with an estimated two-thirds reduction in carbon intensity compared to hard rock mining. This advancement supports the broader transition to clean energy and sustainable production practices, positioning the U.S. as a key player in the global EV battery supply chain.

Ultimately, this partnership marks a crucial step toward establishing a secure, sustainable, and competitive domestic lithium supply, which is essential for meeting the growing demand for electric vehicle batteries in the U.S. and beyond.

LG Chem is a leading global chemical company with a diverse business portfolio spanning petrochemicals, advanced materials, and life sciences. The company produces a wide array of products, including high-value petrochemicals, renewable plastics, and advanced electronic and battery materials, as well as pharmaceuticals and vaccines, providing innovative solutions for its customers. Committed to sustainability, LG Chem aims to achieve carbon-neutral growth by 2030 and reach net-zero emissions by 2050. The company focuses on addressing climate change and contributing positively to society through renewable energy initiatives and responsible supply chain management. Headquartered in Seoul, Korea, LG Chem operates globally and reported consolidated revenue of KRW 55.2 trillion (USD 41.6 billion) in 2023.

ExxonMobil, one of the world’s largest publicly traded energy and petrochemical companies, develops solutions that enhance quality of life and address the evolving needs of society. The company's core business segments—Upstream, Product Solutions, and Low Carbon Solutions—deliver products that support modern living, including energy, chemicals, lubricants, and technologies designed to reduce emissions.