Exxon Signs Deal to Supply Lithium to Battery Maker LG Chem
South Korean Company Broke Ground on Plant in Tennessee Last Year
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Exxon Mobil Corp. has signed a preliminary agreement to provide battery metal lithium to an LG Chem Ltd. plant in the U.S., strengthening the oil major鈥檚 role in the domestic critical minerals supply chain.
The multiyear deal will cover the supply of as much as 100,000 tons of lithium carbonate from Exxon鈥檚 planned project in the U.S. to the South Korean company鈥檚 cathode plant in Tennessee, which broke ground last December, Exxon said in a statement. It follows a similar agreement between Exxon and SK On Co., another Korean battery maker, in June.
Exxon鈥檚 lithium strategy, announced in November 2023, is in line with a U.S. government plan to reduce reliance on China for critical minerals that are key to energy transition. However, prices of the silvery, white metal have plunged since late 2022 on oversupply and a slowdown in demand growth for electric vehicles.
鈥淚t鈥檚 definitely a challenging market right now,鈥 Patrick Howarth, Exxon鈥檚 lithium global business manager, said in an interview. But 鈥渢he world needs a lot more lithium in the future than it鈥檚 producing today. So this is about how do we position our projects in North America in such a way that they can be there to supply North American demand as it increases over time.鈥
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