SK On enters multiyear agreement with ExxonMobil for lithium

On Wednesday, electric vehicle battery developer SK On announced it had signed an agreement with ExxonMobil for its lithium.

The non-binding memorandum of understanding opens the door for the battery maker to secure a multiyear offtake agreement for up to 100,000 metric tons of Mobil Lithium from its planned Arkansas project. SK On said it plans to use the lithium in its UP EV battery operations. The agreement will add to ExxonMobil’s goal of supplying lithium for about one million EV batteries annually by 2030 as well as supporting the build out of the U.S. EV supply chain.

“The world needs more lithium to support its emissions goals, and we’re doing our part to drive solutions forward in the United States,” Dan Ammann, president of ExxonMobil Low Carbon Solutions, said. “This collaboration with SK On demonstrates the leading role we play in the growing market for domestically sourced lithium, a market that’s advancing energy security and climate objectives, as well as supporting American manufacturing.”

Officials said demand for lithium, an essential component for EVs, consumer electronics, energy storage systems and other clean energy technologies, is expected to grow in the coming years. The planned project will extract lithium from underground saltwater deposits and convert it into battery-grade material. This approach, ExxonMobil said, will produce lithium more efficiently and with fewer environmental impacts.

In the U.S., SK On currently operates two battery plants in Commerce, Ga., and is building four more plants through joint ventures with Ford Motor Co., and Hyundai Motor Group. The company expected to reach more than 180 GWh in annual production after 2025.

“SK On has been working with global partners to secure key battery raw materials in a move to support our growing U.S. manufacturing base and lead electrification in the region,” Park Jong-jin, executive vice president of strategic procurement at SK On, said. “Through this partnership with ExxonMobil, we will continue strengthening battery supply chains in the U.S.”

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