ExxonMobil Forges Partnership with SK On for US Lithium SupplyExxonMobil Forges Partnership with SK On for US Lithium Supply
ExxonMobil and SK On sign MOU to secure up to 100,000 metric tons of lithium for US EV battery manufacturing.

ExxonMobil, traditionally known for its role in fueling internal combustion engines, is continuing a notable reach into the electric vehicle (EV) market: It has signed a non-binding memorandum of understanding (MOU) with EV battery maker SK On that opens the door to secure 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 United States.
This strategic move aligns with ExxonMobil’s ambition to supply lithium for about 1 million EV batteries annually by 2030, a significant pivot towards supporting the growing demand for EVs and sustainable energy solutions.
ExxonMobil’s collaboration with Korea-based EV battery manufacturer SK On marks a milestone in developing a robust US electric vehicle and battery supply chain. The planned Arkansas project will utilize direct lithium extraction (DLE) technology to produce battery-grade lithium more efficiently and with fewer environmental impacts than traditional methods, reinforcing energy security and supporting American manufacturing jobs.
SK On battery production in the US
The collaboration with SK On, which operates battery plants in Georgia and plans additional facilities in partnership with Ford and Hyundai, will significantly bolster the U.S. battery supply chain.

SK Battery America's facility in Commerce, GA. SK BATTERY AMERICA
Sk On's signing of the MOU follows earlier moves to shore up its domestic US materials supply chain. In February of this year SK On signed an off-take agreement with Westwater Resources Inc. Under the agreement, Westwater will supply natural purified graphite anode material from its Kellyton Graphite Plant to SK On's battery plants in the US. As per the agreement's stipulations, SK On can procure a combined quantity of 34,000 tons of natural graphite anode products derived from Westwater’s Kellyton Graphite Plant near Kellyton, AL, from 2027 to 2031.
Just as partnering with Westwater allowed SK On to establish a direct relationship with a US-based graphite producer, the new ExxonMobil agreement enables US sourcing of the all-important lithium metal for its domestic battery production. SK On's US production capacity is expected to exceed 180 GWh annually after 2025, enough to power around 1.7 million EVs each year.
ExxonMobil's strategic lithium production
ExxonMobil’s strategic move into lithium production was first announced in late 2023, positioning the company to become a significant player in the EV battery market. By acquiring 120,000 acres in the lithium-rich Smackover Formation in southern Arkansas, ExxonMobil is set to commence production of battery-grade lithium by 2027, with the ambitious goal of supplying enough lithium to facilitate the production of 1 million EVs annually by 2030.
The planned project in Arkansas will extract lithium from underground saltwater deposits, converting it into battery-grade material onsite. This method aims to be more efficient and environmentally friendly compared to traditional hard rock mining. ExxonMobil's core strengths in subsurface exploration, drilling, and chemical processing will facilitate a secure, lower-carbon lithium supply for U.S. EV battery manufacturers.
Utilizing conventional oil and gas drilling techniques, ExxonMobil will access lithium-rich saltwater from reservoirs about 10,000 feet underground. The company will then employ direct lithium extraction (DLE) technology to separate lithium from the saltwater, converting it onsite to battery-grade material. This process produces fewer carbon emissions and requires significantly less land than traditional mining methods.
The logic of diversification
ExxonMobil, one of the largest oil companies globally, is also a significant source of carbon emissions. Like its competitors, it faces pressure from consumers and governments to tackle climate change. Moving into lithium production and supporting electrification through renewable energy and more environmentally friendly processes is one way for ExxonMobil to address these concerns. While this shift may not be as dramatic as "turning swords into plowshares"—oil production will of course continue—it signals a commitment to a future that includes electrification.
Moreover, there's money to be made. Maybe the more appropriate comparison is not from the Old Testament but rather an old internet meme, specifically the Distracted Boyfriend one: The oil company still has its arm around the ICE vehicle sector—but that lovely EV sector is hard to ignore.
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