LG Chem wants to buy US lithium from ExxonMobil

ExxonMobil and LG Chem have signed a non-binding letter of intent for a multi-year purchase agreement for up to 100,000 tonnes of lithium carbonate. That makes LG Chem the second customer from South Korea for the oil company's US project.

It has been known for around a year that ExxonMobil wants to mine lithium in Arkansas under the Mobil Lithium brand – starting in 2027. That involves a lithium-containing brine from which the important battery material will be extracted using direct lithium extraction (DLE). As was announced a few weeks ago, the lithium deposits there are said to be larger than previously assumed.

ExxonMobil has now found a second potential major customer. LG Chem wants to purchase up to 100,000 tonnes of lithium carbonate from ExxonMobil under a multi-year purchase agreement. However, the companies have so far only signed a memorandum of understanding, not a binding supply contract. It is also related to the situation with ExxonMobil’s lithium project. Here, too, the company’s official intention to mine lithium in Arkansas has so far only been announced. “Final investment decision will be subject to various factors including the establishment of commercially competitive regulatory frameworks,” the press release states.

Assuming the permits are granted and ExxonMobil starts mining lithium, some of the material will be delivered to LG Chem’s cathode plant in Tennessee. The plant has been under construction since December 2023 and is expected to have a production capacity of 60,000 tonnes of cathode material per year.

“America needs secure domestic supply of critical minerals like lithium,” said Dan Ammann, President of Low Carbon Solutions at ExxonMobil. “ExxonMobil is proud to lead the way in establishing domestic lithium production, creating jobs, driving economic growth, and enhancing energy security here in the United States.”

“Building a lithium supply chain with ExxonMobil, one of the world’s largest energy companies, holds great significance,” stated Shin Hak-cheol, CEO of LG Chem. “We will continue to strengthen LG Chem’s competitiveness in the global supply chain for critical minerals.”

LG Chem is already the second customer for ExxonMobil’s lithium from South Korea. In June, the company concluded a similar agreement with SK On, with a multi-year supply of up to 100,000 tonnes also planned. SK On is expected to use the material for its own US plants, which are currently built in cooperation with Ford and Hyundai.

exxonmobil.com, lgcorp.com