LG Chem Secures 100,000t Lithium Supply Chain with US ExxonMobil

Arkansas Lithium Production... Tennessee Cathode Material Plant Supply
Strengthening 'Lithium-Cathode Material-Battery' Supply Chain in North America

LG Chem has established a lithium carbonate supply chain, a cathode material for batteries, with ExxonMobil, the world's largest oil and energy company based in the United States. From 2030, LG Chem will secure up to 100,000 tons of lithium annually for up to 10 years.

LG Chem announced on the 21st that it signed a lithium carbonate supply memorandum of understanding with ExxonMobil. ExxonMobil will supply lithium produced from lithium brine lakes in Arkansas, Texas, located about three hours away from LG Chem's Tennessee plant, where LG Chem will produce cathode materials using the lithium.

LG Chem announced on the 21st that it has signed a supply agreement for lithium carbonate with ExxonMobil. Shin Hak-cheol, Vice Chairman of LG Chem (right), is signing the agreement and taking a commemorative photo with Dan Holton, Vice President of ExxonMobil. (Photo by LG Chem)

ExxonMobil acquired the Arkansas brine lake site, spanning 147 million pyeong, last year and began lithium mining using direct lithium extraction (DLE) technology in November. The brine lake is estimated to contain 4 million tons of lithium carbonate, enough to produce batteries for 50 million electric vehicles. The DLE method extracts lithium directly from salt concentrates produced by natural evaporation of brine, which is more environmentally friendly with lower carbon emissions compared to traditional mining using explosives.

LG Chem plans to maximize business synergy by jointly conducting research and development with ExxonMobil on various materials, including RO filters, necessary for developing direct lithium extraction technology.

Through this agreement, LG Chem will be able to establish a stable supply chain in North America that connects lithium, cathode materials, and batteries. The LG Chem Tennessee plant, which began construction in December last year, is the largest cathode material plant in the United States with an annual production capacity of 60,000 tons. Located in the Midwest of the United States, it is highly regarded for its geographic accessibility for customer deliveries and raw material imports.

LG Chem continues to invest in securing key battery materials, including signing a supply contract for 200,000 tons of lithium concentrate with Piedmont Lithium in the United States to ensure stable raw material procurement and cost competitiveness.

Dan Ammann, President of ExxonMobil Low Carbon Solutions, stated, "Through the agreement between the two companies, we will lead the global lithium market," adding, "We will lead the U.S. lithium industry and contribute to carbon reduction, job creation, and economic growth."

Shin Hak-cheol, Vice Chairman of LG Chem, said, "It is significant that we have established a lithium supply chain with ExxonMobil, the world's largest oil company," and added, "We will continue to strengthen our competitiveness in the global supply chain of critical minerals."