Exxon, South Korea’s SK On sign non-binding deal for lithium supply

By Thomson Reuters Jun 25, 2024 | 10:35 AM

(Reuters) -U.S. energy major Exxon Mobil said on Tuesday it had signed a non-binding agreement to supply lithium from its proposed Arkansas project to South Korean EV battery maker SK On.

The agreement has the potential to be a multi-year offtake deal of up to 100,000 metric tons, the company said.

Exxon in November announced plans to produce lithium from pumped out brine in Arkansas, from regions considered to hold significant deposits of the metal.

SK On, a unit of SK Innovation, intends to use the lithium for making EV batteries in the U.S.

The company, which supplies to Volkswagen and Ford Motor, operates two facilities for making batteries in Georgia. It is building four more plants jointly with automakers.

“Through this partnership with ExxonMobil, we will continue strengthening battery supply chains in the U.S.,” said Park Jong-jin, executive vice president of strategic procurement at SK On.

(Reporting by Sourasis Bose in Bengaluru; Editing by Mohammed Safi Shamsi)