LG Chem and ExxonMobil sign MOU for lithium offtake

Exxon Mobil Corporation and LG Chem have entered into a non-binding memorandum of understanding (MOU) for a multi-year agreement to supply up to 100,000 metric tons of lithium carbonate. The lithium will come from ExxonMobil's proposed U.S. project and will be delivered to LG Chem’s cathode manufacturing facility in Tennessee, which is anticipated to become the largest of its kind in the United States.

Construction of LG Chem’s cathode plant in Tennessee began in December 2023, with plans for an annual production capacity of 60,000 tons. The facility is strategically located to ensure convenient access for both customer deliveries and the import of raw materials.

"America needs secure domestic supply of critical minerals like lithium. 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."

- Dan Ammann, President, Low Carbon Solutions

“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.”

The final investment decision will depend on several factors, including the development of commercially competitive regulatory frameworks. ExxonMobil plans to produce Mobil™ Lithium using Direct Lithium Extraction (DLE) technology, leveraging its expertise in subsurface exploration, drilling, and chemical processing. This method provides U.S. EV battery manufacturers with a domestically sourced and processed lithium supply, expected to significantly reduce environmental impacts, including approximately two-thirds lower carbon intensity compared to traditional hard rock mining.