WionDrive News Desk 
In order to reshape the landscape of electric vehicle (EV) battery manufacturing in the United States, energy giant ExxonMobil has entered into a non-binding memorandum of understanding (MOU) with SK On, a leading global EV battery developer. This partnership aims to secure a substantial supply of domestically produced lithium for SK On’s U.S.-based EV battery manufacturing operations.
The agreement opens the door for a multiyear offtake arrangement of up to 100,000 metric tons of Mobil™ Lithium from ExxonMobil’s first planned project in Arkansas. This collaboration aligns with ExxonMobil’s ambitious goal, announced in late 2023, to supply lithium for approximately 1 million EV batteries annually by 2030, while simultaneously supporting the development of a robust U.S. EV supply chain.
The demand for lithium is projected to skyrocket in the coming years, given its crucial role in EVs, consumer electronics, energy storage systems, and various clean energy technologies. ExxonMobil’s planned project in Arkansas aims to extract lithium from underground saltwater deposits and convert it into battery-grade material on-site. This innovative approach is designed to produce lithium more efficiently and with a reduced environmental footprint compared to traditional hard rock mining methods.
Dan Ammann, President of ExxonMobil Low Carbon Solutions, emphasised the company’s commitment to driving solutions forward in the United States. “The world needs more lithium to support its emissions goals, and we’re doing our part to drive solutions forward in the United States,” Ammann stated. He further highlighted the collaboration’s significance in advancing energy security, climate objectives, and supporting American manufacturing.
ExxonMobil’s planned production of Mobil™ Lithium will leverage the company’s core capabilities in subsurface exploration, drilling, and chemical processing. This approach aims to offer U.S. EV battery manufacturers a more secure and lower-carbon lithium supply option. The company has already made significant strides in this direction, successfully producing lithium carbonate from the Smackover formation in southern Arkansas through its appraisal drilling program and technology pilot using Direct Lithium Extraction (DLE) technology.
For SK On, this partnership represents a crucial step in securing key battery raw materials to support its growing U.S. manufacturing base. The company currently operates two battery plants in Commerce, Georgia, and is in the process of building four more plants through joint ventures with Ford Motor Co. and Hyundai Motor Group. SK On’s annual production capacity in the U.S. is expected to reach an impressive 180 GWh after 2025, sufficient to power approximately 1.7 million EVs annually.
Park Jong-jin, Executive Vice President of Strategic Procurement at SK On, expressed the company’s commitment to strengthening battery supply chains in the U.S. through this partnership with ExxonMobil. “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 stated.
This collaboration between ExxonMobil and SK On represents a significant step towards creating a more resilient and sustainable EV battery supply chain in the United States. By focusing on domestic lithium production, the partnership aims to reduce dependency on foreign sources, minimise supply chain disruptions, and contribute to the country’s clean energy transition.
As the EV market continues to expand rapidly, partnerships like this will play a crucial role in ensuring a steady supply of essential materials for battery production. The successful implementation of this agreement could set a precedent for similar collaborations in the future, potentially accelerating the growth of the U.S. EV industry and supporting the country’s broader clean energy goals.
