LG Chem and ExxonMobil sign MOU for lithium offtake
ExxonMobil (NYSE: XOM) and LG Chem have signed a non-binding MOU for a lithium carbonate offtake agreement of up to 100,000 metric tons. The lithium will be supplied from ExxonMobil's planned U.S. project to LG Chem's Tennessee cathode plant, expected to be the largest in the U.S. with an annual capacity of 60,000 tons. The project will utilize Direct Lithium Extraction (DLE) technology, promising approximately two-thirds less carbon intensity than hard rock mining. The final investment decision depends on establishing commercially competitive regulatory frameworks.
ExxonMobil (NYSE: XOM) e LG Chem hanno firmato un MOU non vincolante per un accordo di acquisto di carbonato di litio fino a 100.000 tonnellate metriche. Il litio sarà fornito dal progetto statunitense pianificato da ExxonMobil alla fabbrica di catodi di LG Chem in Tennessee, che si prevede sarà la più grande negli Stati Uniti con una capacità annuale di 60.000 tonnellate. Il progetto utilizzerà la tecnologia Direct Lithium Extraction (DLE), promettendo circa due terzi in meno di intensità di carbonio rispetto all'estrazione da roccia dura. La decisione finale di investimento dipende dall'istituzione di quadri normativi competitivi dal punto di vista commerciale.
ExxonMobil (NYSE: XOM) y LG Chem han firmado un MOU no vinculante para un acuerdo de compra de carbonato de litio de hasta 100,000 toneladas métricas. El litio se suministrará del proyecto estadounidense planificado por ExxonMobil a la planta de cátodos de LG Chem en Tennessee, que se espera sea la más grande de EE. UU. con una capacidad anual de 60,000 toneladas. El proyecto utilizará la tecnología Direct Lithium Extraction (DLE), prometiendo aproximadamente dos tercios menos de intensidad de carbono que la minería de roca dura. La decisión final de inversión depende del establecimiento de marcos regulatorios competitivos a nivel comercial.
ExxonMobil (NYSE: XOM)과 LG Chem은 최대 100,000 메트릭 톤의 리튬 탄산염 구매 계약을 위한 비구속 양해각서(MOU)를 체결했습니다. 리튬은 ExxonMobil의 미국 계획 프로젝트에서 LG Chem의 테네시 양극 공장으로 공급될 예정이며, 이 공장은 연간 60,000 톤의 용량을 가지고 있어 미국 내 가장 큰 규모가 될 것으로 예상됩니다. 이 프로젝트는 직접 리튬 추출(DLE) 기술을 활용하며, 경석 채굴보다 약 3분의 2 적은 탄소 강도를 약속합니다. 최종 투자 결정은 상업적으로 경쟁력 있는 규제 프레임워크의 구축에 달려 있습니다.
ExxonMobil (NYSE: XOM) et LG Chem ont signé un protocole d'accord non contraignant pour un contrat de rachat de carbonate de lithium pouvant aller jusqu'à 100 000 tonnes métriques. Le lithium sera fourni par le projet américain prévu d'ExxonMobil à l'usine de cathodes de LG Chem dans le Tennessee, qui devrait être la plus grande des États-Unis avec une capacité annuelle de 60 000 tonnes. Le projet utilisera la technologie Extraction Directe de Lithium (DLE), promettant environ deux tiers de la réduction de l'intensité carbonique par rapport à l'extraction de la roche dure. La décision d'investissement finale dépend de l'établissement de cadres réglementaires compétitifs sur le plan commercial.
ExxonMobil (NYSE: XOM) und LG Chem haben eine unverbindliche Absichtserklärung für einen Abnahmevertrag über Lithiumcarbonat von bis zu 100.000 metrischen Tonnen unterzeichnet. Das Lithium wird aus dem geplanten US-Projekt von ExxonMobil an das Katodenwerk von LG Chem in Tennessee geliefert, das voraussichtlich das größte in den USA mit einer Jahreskapazität von 60.000 Tonnen sein wird. Das Projekt wird die Technologie der Direkten Lithiumextraktion (DLE) nutzen, die verspricht, etwa zwei Drittel weniger Kohlenstoffintensität als der Abbau von Hartgestein aufzuweisen. Die endgültige Investitionsentscheidung hängt von der Schaffung kommerziell wettbewerbsfähiger regulatorischer Rahmenbedingungen ab.
- Strategic partnership securing large-scale lithium supply agreement (100,000 metric tons)
- Project leverages ExxonMobil's core competencies in subsurface exploration and chemical processing
- Lower environmental impact with DLE technology reducing carbon intensity by ~66% compared to traditional mining
- Potential to strengthen U.S. domestic lithium supply chain and reduce dependency on foreign sources
- Final investment decision still pending and subject to regulatory frameworks
- Non-binding nature of the MOU indicates uncertainty in project execution
- Production timeline and specific financial terms not disclosed
Insights
This strategic MOU between ExxonMobil and LG Chem marks a significant development in the U.S. domestic lithium supply chain. The planned 100,000 metric tons lithium carbonate offtake agreement positions XOM as a major player in the critical minerals sector, diversifying beyond traditional oil and gas operations.
The deal aligns with two important market trends: the growing demand for EV battery materials and the push for domestic supply chain security. Using Direct Lithium Extraction technology could give XOM a competitive advantage with
The Tennessee facility's strategic location and substantial capacity of 60,000 tons annually demonstrates strong commercial potential. However, investors should note that final investment decisions remain contingent on regulatory frameworks and market conditions.
The implementation of Direct Lithium Extraction (DLE) technology represents a significant technological advancement over traditional lithium mining methods. The projected
This initiative aligns with XOM's broader decarbonization strategy, including their 2030 emission reduction targets and 2050 net-zero goals. The project demonstrates how traditional energy companies can leverage existing expertise in subsurface operations and chemical processing to advance clean energy transitions while maintaining competitive advantages.
- Offtake agreement for up to 100,000 tons of lithium carbonate
-
Aims to strengthen the
U.S. critical mineral supply chain - Contributes to domestic energy security, manufacturing, jobs and emission reductions
- Lithium production contingent on supportive regulatory frameworks, among other factors
“America needs secure domestic supply of critical minerals like lithium,” said Dan Ammann, president of ExxonMobil Low Carbon Solutions. “ExxonMobil is proud to lead the way in establishing domestic lithium production, creating jobs, driving economic growth, and enhancing energy security here in the United States.”
LG Chem’s
“Building a lithium supply chain with ExxonMobil, one of the world’s largest energy companies, holds great significance,” stated Shin Hak-cheol, CEO of LG Chem. “We will continue to strengthen LG Chem’s competitiveness in the global supply chain for critical minerals.”
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 (DLE) technology, aligning seamlessly with ExxonMobil’s core competencies in subsurface exploration, drilling, and chemical processing. This approach offers
About LG Chem
LG Chem is a leading global chemical company with a diversified business portfolio in the key areas of petrochemicals, advanced materials, and life sciences. The company manufactures a wide range of products from high-value-added petrochemicals to renewable plastics, specializing in cutting-edge electronic and battery materials, as well as drugs and vaccines to deliver differentiated solutions for its customers. LG Chem is committed to reaching carbon-neutral growth by 2030 and net-zero emissions by 2050 by managing the impacts of climate change and making positive contributions to society through renewable energy and responsible supply chains. Headquartered in
About ExxonMobil
ExxonMobil, one of the largest publicly traded international energy and petrochemical companies, creates solutions that improve quality of life and meet society’s evolving needs.
The corporation’s primary businesses - Upstream, Product Solutions and Low Carbon Solutions – provide products that enable modern life, including energy, chemicals, lubricants, and lower emissions technologies. ExxonMobil holds an industry-leading portfolio of resources, and is one of the largest integrated fuels, lubricants, and chemical companies in the world. ExxonMobil also owns and operates the largest CO2 pipeline network in
With advancements in technology and the support of clear and consistent government policies, ExxonMobil aims to achieve net-zero Scope 1 and 2 greenhouse gas emissions from its operated assets by 2050. To learn more, visit exxonmobil.com and ExxonMobil’s Advancing Climate Solutions.
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Cautionary Statement
Statements of future events, investments, or partnerships in this release are forward-looking statements. Actual future results, including project plans, partner participation, timing, capacities, and costs could differ materially depending on a number of factors including the ability to execute operational objectives on a timely and successful basis; the rate and pace of implementation of cost-effective direct lithium extraction technology; timely completion of construction projects; commercial and consumer interest in lower-emissions opportunities; changes in plans or objectives prior to final funding decisions or project startups; unforeseen technical or operational difficulties; and other factors discussed under the heading Factors Affecting Future Results in the Investors section of our website at www.exxonmobil.com. Any forward-looking statement speaks only as of the date of this press release and the companies named herein disclaim any obligation to update any forward-looking statement.
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Source: Exxon Mobil Corporation
FAQ
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