Exxon Mobil has signed a preliminary agreement to supply lithium carbonate to LG Chem Ltd.’s cathode manufacturing plant in Tennessee, reinforcing its growing role in the domestic critical minerals supply chain.
The multiyear agreement includes the delivery of up to 100,000 tons of lithium carbonate from Exxon’s upcoming lithium project in the US.
The Tennessee plant, under construction since December, will use the lithium to produce battery components for electric vehicles (EVs) and other energy storage systems.
This deal follows a similar partnership Exxon established with SK On Co., another South Korean battery manufacturer, in June 2024.
Exxon’s lithium strategy, launched in November 2023, aligns with US government efforts to reduce dependency on China for critical minerals essential to the energy transition.
However, lithium prices have declined significantly since late 2022 due to oversupply and a slowdown in EV demand growth.
“It’s definitely a challenging market right now,” said Patrick Howarth, Exxon’s Global Business Manager for Lithium.
“But the world will need significantly more lithium in the future than it’s producing today. Our focus is on positioning our North American projects to meet this increasing demand over time.”
The agreement highlights Exxon’s ambition to become a key player in securing a domestic supply of critical materials, vital for the nation’s energy transition and technological advancements.
