SK On, Exxon Mobil sign MOU on supply of 100,000 tons of lithium

Industry

Published: 26 Jun. 2024, 16:49

SK On, Exxon Mobil sign MOU on supply of 100,000 tons of lithium

SK On's Park Jong-jin, vice president of strategic purchasing, left, and Dan Holton, senior vice president of Exxon Mobil’s low carbon solutions business, pose after signing a lithium supply deal at the Fastmarkets Lithium Supply and Battery Raw Materials Conference held at Las Vegas on Monday. [SK ON]

SK On inked a lithium supply deal with U.S. energy giant Exxon Mobil to secure up to 100,000 tons of the key material in EV battery manufacturing.

The Korean battery maker and Exxon Mobil signed a memorandum of understanding (MOU) at the Fastmarkets Lithium Supply and Battery Raw Materials Conference held in Las Vegas on Monday.

The signing ceremony was attended by Park Jong-jin, vice president of strategic purchasing at SK On, and Dan Holton, senior vice president of Exxon Mobil’s low carbon solutions business.

The nonbinding multiyear agreement allows SK On to be supplied with up to 100,000 tons of lithium from Exxon's project in Arkansas, a region evaluated to hold significant reserves of the metal.

The specific supply volume and contract period will be discussed at a later stage, the company said.

The project will extract lithium from underground saltwater deposits and convert it into battery-grade material on-site in Arkansas using direct lithium extraction technology. The method enables lithium to be produced more efficiently, with lower carbon emissions and less wasted water compared to traditional hard rock mining.

SK On plans to use the lithium in its U.S. battery plants. The battery maker operates two plants in Georgia and plans to build four more jointly with automakers.

“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,” Park said in a statement. “Through this partnership with Exxon Mobil, we will continue strengthening battery supply chain in the United States.”

BY LEE JAE-LIM [lee.jaelim@joongang.co.kr]