EV battery maker SK On has signed a non-binding agreement to buy lithium from ExxonMobil’s first planned extraction project in Arkansas.
Sk On and ExxonMobil’s big lithium deal
Sk On and ExxonMobil signed a non-binding memorandum of understanding (MOU) that has the potential for a multiyear offtake agreement of up to 100,000 metric tons of lithium.
South Korea-headquartered SK On will use the lithium to manufacture EV batteries in the US. It has two battery-making factories in Georgia, and it’s building four more battery factories jointly with automakers. SK On supplies its US-made EV batteries to Hyundai, Volkswagen, and Ford (their BlueOval SK Battery Park image is above).
In November 2023, ExxonMobil announced that it was drilling its first lithium well in southern Arkansas after it acquired rights to 120,000 gross acres of the Smackover Formation, one of North America’s most plentiful lithium resources.
The Arkansas project will extract lithium from underground saltwater deposits and convert it into battery-grade material onsite. Exxon asserts that this method will produce lithium more efficiently and with fewer environmental impacts than traditional hard rock mining.
ExxonMobil set a goal in late 2023 to supply lithium for around 1 million EV batteries annually by 2030, and it’s targeting 2027 for first production.
