SK On to Supply 100,000 Tons of Lithium from US ExxonMobil... "Response to IRA"

"Continuous Efforts to Secure Critical Minerals Meeting IRA Requirements"

SK On has partnered with ExxonMobil, the largest oil company in the United States, to secure a supply chain for American lithium.

On the 24th (local time), SK On announced on the 26th that it signed a memorandum of understanding (MOU) with ExxonMobil for lithium supply at the 'Fastmarkets Conference,' the world's largest lithium and battery raw materials conference held in Las Vegas, USA.

At the Fastmarkets Conference, a lithium and battery raw materials conference held in Las Vegas, USA, on the 24th (local time), Jongjin Park, Vice President of Strategic Procurement at SK On (right), and Dan Holton, Vice President of ExxonMobil Low Carbon Solutions Business, are taking a commemorative photo after signing a memorandum of understanding for lithium supply.
[Photo by SK On]

Through this agreement, SK On will receive up to 100,000 tons of lithium produced using direct lithium extraction (DLE) technology from lithium brine lakes in Arkansas operated by ExxonMobil. The specific supply schedule and quantity will be finalized after the main contract is signed.

DLE is a method that directly extracts lithium from brine through adsorption and other processes, producing less carbon emissions compared to hard rock mining, which uses explosives. Compared to the traditional method of evaporating saltwater from brine lakes to obtain lithium, DLE has the advantages of shorter production time, higher productivity, and lower water usage.

ExxonMobil acquired the Arkansas brine lake early last year to enter the battery core materials business and has started lithium mining. It is estimated that 4 million tons of lithium carbonate are deposited there, enough to produce batteries for 50 million electric vehicles. ExxonMobil aims to supply lithium equivalent to 1 million electric vehicles annually starting in 2030.

SK On is continuously striving to build a global supply chain for critical minerals in response to rapidly changing global industrial policies such as the IRA and the EU Critical Raw Materials Act (CRMA). In February, it signed a natural graphite supply purchase agreement with Westwater in the U.S., and in November 2022, it signed a lithium supply purchase agreement with SQM in Chile. In December 2019, it signed a cobalt purchase agreement with Glencore in Switzerland.

Jongjin Park, Vice President of Strategic Procurement at SK On, said, "We will continue to make efforts to secure critical minerals that meet IRA requirements to guarantee consumer benefits in the key North American market."