Lithium | LG Chem to Purchase Lithium from ExxonMobil

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Lithium | LG Chem to Purchase Lithium from ExxonMobil

Date：2024-11-25

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Keyword tags： Lithium NA ExxonMobil

LG Chem has recently signed a non-binding letter of intent with ExxonMobil to purchase up to 100,000 metric tons of lithium carbonate from ExxonMobil's planned lithium project over a period of 10 years, starting from 2030. The lithium carbonate will be supplied to LG Chem's cathode material plant in Tennessee.

LG Chem's cathode material plant in Tennessee began construction in December 2023, with an expected annual production capacity of 60,000 tons. The facility is set to become the largest of its kind in the United States, with a planned completion and commencement of production in 2026. The total investment for the project is approximately $1.6 billion.

This is not ExxonMobil's first agreement to supply lithium carbonate. In June 2024, the company signed a similar non-binding memorandum of understanding with SK On, under which ExxonMobil will supply 100,000 tons of lithium carbonate over a multi-year period.

ExxonMobil plans to supply both customers from its lithium project in the Smackover formation in southern Arkansas. The company acquired a lithium brine field in Arkansas, covering 14,700 hectares, early last year and began lithium extraction in November using direct lithium extraction (DLE) technology.

To strengthen its supply chain, LG Chem also signed a 200,000-ton lithium concentrate purchase agreement with Piedmont Lithium Inc. last year, with an investment of $75 million for a 6% stake in the company.

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