LG Chem and ExxonMobil have signed a non-binding memorandum of understanding (MOU) for a long-term supply arrangement of up to 100,000 metric tons of lithium carbonate. The lithium, sourced from ExxonMobil’s upcoming U.S.-based production project, will be directed to LG Chem’s cathode manufacturing facility in Tennessee.
This plant, set to become the largest cathode production site in the U.S., began construction in December 2023 and aims to produce 60,000 tons annually. The location provides strategic advantages for raw material sourcing and customer distribution.
“Partnering with ExxonMobil, one of the world’s largest energy companies, to build a lithium supply chain is a significant milestone,” said Shin Hak-cheol, CEO of LG Chem. “We are committed to further enhancing LG Chem’s competitiveness in the global critical minerals supply chain.”
The final investment decision will depend on several factors, including the development of commercially viable regulatory frameworks. The planned production of Mobil™ Lithium will use Direct Lithium Extraction (DLE) technology, which aligns with ExxonMobil’s expertise in subsurface exploration, drilling, and chemical processing. This method provides U.S. EV battery manufacturers with a domestic lithium supply option that is expected to have a significantly lower environmental impact, including approximately two-thirds less carbon intensity compared to traditional hard rock mining.
ExxonMobil, a major energy and petrochemical corporation, operates across Upstream, Product Solutions, and Low Carbon Solutions. With a leading portfolio of resources and one of the world’s largest CO2 pipeline networks, the company focuses on energy production, advanced chemical solutions, and emission reduction technologies. ExxonMobil has set targets to cut greenhouse gas emissions by 20-30% by 2030 compared to 2016 levels and aims for net-zero operational emissions by 2050.
Headquartered in Seoul, South Korea, LG Chem is a global leader in the chemical industry with operations spanning petrochemicals, advanced materials, and life sciences. The company produces high-value materials like renewable plastics, cutting-edge battery components, and pharmaceuticals. LG Chem is committed to sustainability, aiming for carbon-neutral growth by 2030 and achieving net-zero emissions by 2050. In 2023, the company reported revenue of KRW 55.2 trillion (USD 41.6 billion).
