Exxon Mobil Corp. (XOM), a prominent player in the oil and gas industry, revealed on Wednesday that it has signed a non-binding memorandum of understanding with LG Chem, a leading South Korean chemicals company. This agreement outlines a prospective multiyear offtake arrangement for up to 100,000 tons of lithium carbonate.
The lithium will be sourced from ExxonMobil's anticipated project in the United States and will supply LG Chem's cathode manufacturing facility in Tennessee.
Established in 2023, LG Chem's Tennessee cathode plant is poised to achieve an annual production capacity of 60,000 tons. This development presents a valuable opportunity for U.S.-based EV battery manufacturers to access domestically extracted and processed lithium. The supply chain offers significantly lower environmental impacts, including approximately two-thirds less carbon intensity compared to traditional hard rock mining methods.
