By Chris Wack


ExxonMobil has signed a non-binding memorandum of understanding with SK On, an electric vehicle battery developer, that could lead to a multiyear offtake agreement of up to 100,000 metric tons of lithium from the company's first planned project in Arkansas.

SK On plans to use the lithium in its EV battery manufacturing operations in the U.S.

This will contribute to ExxonMobil's goal, announced in late 2023, of supplying lithium for about one million EV batteries annually by 2030 and support the build out of a U.S. EV supply chain.

The planned project will extract lithium from underground saltwater deposits and convert it into battery-grade material onsite in Arkansas.

In the U.S., SK On currently operates two battery plants in Commerce, Ga., and is building four more plants through joint ventures with Ford Motor Co. and Hyundai Motor Group.

After 2025, the annual production capacity of SK On in the U.S. alone is expected to reach more than 180 GWh, which is enough to power about 1.7 million EVs a year.


Write to Chris Wack at chris.wack@wsj.com


(END) Dow Jones Newswires

06-25-24 1051ET