SK On, a leading global manufacturer of electric vehicle (EV) batteries, announced that it has signed a non-binding memorandum of understanding (MOU) with ExxonMobil for a potential lithium offtake agreement in the United States as part of its efforts to strengthen the battery supply chain in the region.
SK On has signed a non-binding memorandum of understanding with ExxonMobil to potentially secure up to 100,000 metric tons of lithium from ExxonMobil’s project in Arkansas. This collaboration aims to strengthen SK On’s battery supply chain in the US. The MOU, signed in Las Vegas, aligns with ExxonMobil’s goal to supply lithium for more than one million electric vehicle batteries per year by 2030.
Under the MOU, SK On can explore a multi-year agreement that would allow the company to source up to 100,000 metric tons of lithium from ExxonMobil’s project in Arkansas. More details, including the contract period and supply volume, will be discussed later.
The MOU was signed on the sidelines of the Fastmarkets Lithium Supply and Battery Commodities Conference in Las Vegas on June 24.
Through the MOU, SK On seeks to have a stable supply of key battery minerals in the US, where the company is expanding its presence. SK On plans to use ExxonMobil’s lithium for its battery plants in the US.
SK On, part of South Korea’s second-largest conglomerate, SK Group, currently operates two electric vehicle battery plants in Commerce, Georgia. The company is also building three battery plants in the U.S. with Ford Motor Co. BlueOval SK, the joint venture between SK On and Ford, plans to operate two battery plants in Glendale, Kentucky, and a factory in Stanton, Tennessee.
SK On is also building an electric vehicle battery plant in Bartow County, Georgia, through a joint venture with Hyundai Motor Group. After 2025, SK On’s annual production capacity in the US alone is expected to reach more than 180 GWh, enough to power around 1.7 million electric vehicles annually.
For ExxonMobil, the power purchase memorandum of understanding can contribute to its goal of supplying lithium for more than one million electric vehicle batteries annually by 2030 and support the US initiative to build a national electric vehicle supply chain.
ExxonMobil has successfully produced lithium carbonate from the Smackover formation in southern Arkansas through the technology pilot and appraisal drilling program utilizing direct lithium extraction (DLE) technology. The project will extract lithium from underground saltwater deposits and convert it into battery-grade material at a site in Arkansas. This approach aims to produce lithium more efficiently and with less environmental impact than traditional hard rock mining.
“The world needs more lithium to support its emissions goals and we are doing our part to drive solutions in the United States,” he said Dan Ammann, president of ExxonMobil Low Carbon Solutions. “This collaboration with SK On demonstrates the leadership role we play in the growing domestically sourced lithium market, advancing climate and energy security goals while supporting American manufacturing.”
“SK On has been working with global partners to secure key raw materials for batteries in a move to support our growing US manufacturing base and lead electrification in the region,” he said. Park Jong-jin, Executive Vice President of Strategic Procurement at SK On. “Through this partnership with Exxon Mobil, we will continue to strengthen the battery supply chain in the US.”
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Fiber2Fashion News Desk (HU)
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