Exxon Mobil and LG Chem sign provision agreement for lithium carbonate

Exxon Mobil (XOM) and LG Chem have signed a non-binding memorandum of understanding, or MOU, for a multiyear offtake agreement for up to 100,000 metric tons of lithium carbonate. The lithium will be supplied from ExxonMobil’s planned project in the U.S. to LG Chem’s cathode plant in Tennessee, which LG Chem expects to be the largest of its kind in the U.S. LG Chem’s Tennessee cathode plant broke ground in December 2023 and is expected to have an annual production capacity of 60,000 tons. The plant offers excellent geographic accessibility for both customer deliveries and raw material imports. Final investment decision will be subject to various factors including the establishment of commercially competitive regulatory frameworks. The planned production of MobilTM Lithium will utilize Direct Lithium Extraction technology, aligning with ExxonMobil’s competencies in subsurface exploration, drilling, and chemical processing.