Summary
- Exxon has signed a lithium offtake agreement with LG Chem for 100,000 tons of lithium carbonate
- The aim is to strengthen the critical mineral supply chain in the US
- LG Chem expects the supplied lithium to be used in its cathode plant in Tennessee
- Exxon is utilizing Direct Lithium Extraction (DLE) technology for lithium production, which aligns with its core competencies
- LG Chem’s battery cathode factory in Tennessee aims to produce 60,000 tons of cathodes per year at full production capacity
Article
Exxon Mobil, known for being a major oil company, is now entering the lithium market with a recent announcement of signing a lithium offtake agreement with LG Chem. The agreement is for 100,000 tons of lithium carbonate, aiming to strengthen the critical mineral supply chain in the US. The lithium will be supplied from ExxonMobil’s planned project in the US to LG Chem’s cathode plant in Tennessee, which is expected to be the largest of its kind in the US. This move signifies Exxon’s entry into the EV movement and contribution to providing lithium to battery companies.
LG Chem’s CEO, Shin Hak-cheol, emphasized the importance of building a lithium supply chain with ExxonMobil, a global energy company, to enhance competitiveness in the global supply chain for critical minerals. Dan Ammann, President of Low Carbon Solutions at ExxonMobil, highlighted the need for a secure domestic supply of critical minerals like lithium in America. The company aims to create jobs, drive economic growth, and enhance energy security through domestic lithium production, utilizing its core competencies in subsurface exploration, drilling, and chemical processing.
Exxon Mobil plans to utilize Direct Lithium Extraction (DLE) technology for the production of Mobil™ Lithium, aligning with its expertise in subsurface exploration and chemical processing. This approach is expected to have substantially lower environmental impacts compared to traditional hard rock mining methods, with approximately two-thirds less carbon intensity. The construction of LG Chem’s battery cathode factory in Tennessee began in December 2023, with a goal to produce 60,000 tons of cathodes per year at full production capacity.
Although many may not be happy with Exxon Mobil’s track record of climate misinformation and pollution, the company’s move into the lithium market signifies a shift towards supporting the EV movement and reducing environmental impacts. By providing domestically extracted and processed lithium to EV battery manufacturers, Exxon Mobil is taking steps towards contributing to climate progress and supporting the cleantech revolution. This development showcases the potential for traditional oil companies to pivot towards cleaner energy solutions and drive innovation in the lithium supply chain.
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