ExxonMobil (NYSE: XOM) has entered into a non-binding memorandum of understanding (MOU) with SK On, a leading global electric vehicle (EV) battery manufacturer. This agreement paves the way for a potential multiyear supply deal of up to 100,000 metric tons of Mobil™ Lithium from ExxonMobil’s inaugural project in Arkansas. SK On intends to utilize this lithium in its U.S. EV battery production. This initiative aligns with ExxonMobil’s late 2023 objective of supplying lithium for approximately 1 million EV batteries annually by 2030, contributing to the development of a U.S. EV supply chain.

The demand for lithium is expected to surge significantly in the coming years, driven by its crucial role in electric vehicles (EVs), consumer electronics, energy storage systems, and other clean energy technologies. The proposed project will involve extracting lithium from underground saltwater deposits in Arkansas and converting it into battery-grade material directly at the site. This method aims to enhance efficiency and minimize environmental impacts compared to traditional hard rock mining.

"The world requires more lithium to meet its emissions targets, and we're committed to advancing solutions here in the United States," stated Dan Ammann, President of ExxonMobil Low Carbon Solutions. "Our collaboration with SK On underscores our leadership in the growing market for domestically sourced lithium, which strengthens energy security, advances climate objectives, and bolsters American manufacturing."

The planned production of Mobil™ Lithium will leverage ExxonMobil's expertise in subsurface exploration, drilling, and chemical processing, providing U.S. EV battery manufacturers with a more reliable and lower-carbon lithium supply option. Utilizing an appraisal drilling program and a technology pilot employing Direct Lithium Extraction (DLE) technology, ExxonMobil has successfully extracted lithium carbonate from the Smackover formation in southern Arkansas.

In the U.S., SK On runs two battery plants in Commerce, Georgia, and is building four more through partnerships with Ford Motor Co. and Hyundai Motor Group. By 2025, SK On's annual production capacity in the U.S. is expected to surpass 180 GWh, enough to power around 1.7 million electric vehicles each year.

“SK On has partnered with global allies to secure critical battery raw materials, bolstering our expanding U.S. manufacturing operations and spearheading electrification efforts in the region,” stated Park Jong-jin, Executive Vice President of Strategic Procurement at SK On. “Our partnership with ExxonMobil will further reinforce battery supply chains in the U.S.”

ExxonMobil, a leading publicly traded international energy and petrochemical company, develops solutions that enhance quality of life and address society’s changing needs. The company’s main divisions—Upstream, Product Solutions, and Low Carbon Solutions—offer essential products that support modern living, such as energy, chemicals, lubricants, and technologies aimed at reducing emissions.