ExxonMobil (NYSE: XOM) has signed a non-binding memorandum of understanding (MOU) with SK On, a leading global electric vehicle (EV) battery developer. The MOU paves the way for a multiyear offtake agreement for up to 100,000 metric tons of Mobil™ Lithium from ExxonMobil’s first planned project in Arkansas. SK On will use the lithium in its U.S. EV battery manufacturing operations, contributing to ExxonMobil’s goal of supplying lithium for about one million EV batteries annually by 2030 and supporting the development of a U.S. EV supply chain.
Lithium demand is expected to rise sharply due to its essential role in EVs, consumer electronics, energy storage systems, and other clean energy technologies. The Arkansas project will extract lithium from underground saltwater deposits and convert it into battery-grade material onsite, aiming for more efficient and environmentally friendly production compared to traditional hard rock mining.
“The world needs more lithium to support its emissions goals, and we’re doing our part to drive solutions forward in the United States,” said Dan Ammann, President of ExxonMobil Low Carbon Solutions. “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.”
Mobil™ Lithium production will leverage ExxonMobil’s expertise in subsurface exploration, drilling, and chemical processing, providing U.S. EV battery manufacturers with a secure, lower-carbon lithium supply option. ExxonMobil has successfully produced lithium carbonate from the Smackover formation in southern Arkansas through an appraisal drilling program and technology pilot using Direct Lithium Extraction (DLE) technology.
In the U.S., SK On operates two battery plants in Commerce, Georgia, and is building four more plants through joint ventures with Ford Motor Co. and Hyundai Motor Group. By 2025, SK On’s annual production capacity in the U.S. is expected to exceed 180 GWh, enough to power about 1.7 million EVs annually.
“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,” said Park Jong-jin, Executive Vice President of Strategic Procurement at SK On. “Through this partnership with ExxonMobil, we will continue strengthening battery supply chains in the U.S.”
