South Korean battery cell manufacturer SK On has entered into a non-binding agreement with ExxonMobil, aiming to procure up to 100,000 tonnes of lithium annually from the U.S. energy giant’s first planned project in Arkansas. The agreement sets the stage for a multi-year supply arrangement crucial for SK On’s battery cell production, specifically targeting electric vehicles (EVs) manufactured in the United States.
SK On, which currently operates two battery factories in Georgia and is constructing three more in collaboration with Ford, plans significant expansion through its joint venture, BlueOval SK. This includes upcoming facilities in Kentucky and Tennessee, supported by another partnership with Hyundai in Georgia. By 2025, SK On anticipates ramping up production capacity to over 180 gigawatt-hours (GWh), sufficient for approximately 1.7 million electric vehicles annually in the U.S.
ExxonMobil’s lithium extraction in Arkansas utilizes Direct Lithium Extraction (DLE) technology, tapping into underground saltwater deposits to yield battery-grade material with enhanced efficiency and reduced environmental impact compared to traditional mining methods.
“The world needs more lithium to support its emissions goals, and we’re doing our part to drive solutions forward in the United States,” remarked Dan Ammann, President of ExxonMobil Low Carbon Solutions.
Park Jong-jin, Executive Vice President of Strategic Procurement at SK On, emphasized the strategic importance of securing key battery raw materials to bolster their expanding U.S. manufacturing footprint: “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.”
ExxonMobil’s discussions extend beyond SK On, with negotiations reportedly underway with Tesla, Ford, Volkswagen, and other automakers regarding potential lithium supply agreements.