Exxon Mobil's Lithium Leap: 100,000 Metric Tons To Fuel LG Chem's US Plant

Exxon Mobil Corporation XOM inked a non-binding MOU for a multiyear agreement with LG Chem, a chemical company with a diversified business portfolio.

According to this, ExxonMobil will supply up to 100,000 metric tons of lithium carbonate from its planned U.S. project to LG Chem’s upcoming cathode plant in Tennessee, which is set to be the largest in the U.S.

LG Chem’s Tennessee cathode plant, which began construction in December 2023, is projected to produce 60,000 tons annually.

The facility’s strategic location ensures efficient customer deliveries and raw material imports.

The final investment decision will depend on establishing commercially viable regulatory frameworks.

ExxonMobil plans to produce Mobil Lithium using Direct Lithium Extraction (DLE) technology, leveraging its expertise in exploration, drilling, and chemical processing.

This method provides U.S. EV battery manufacturers with a domestic lithium supply option, which is expected to reduce environmental impact with about two-thirds lower carbon intensity compared to hard rock mining.

Shin Hak-cheol, CEO of LG Chem, said, “Building a lithium supply chain with ExxonMobil, one of the world’s largest energy companies, holds great significance.”

“We will continue to strengthen LG Chem’s competitiveness in the global supply chain for critical minerals.”

This month, Exxon Mobil reportedly planned to sell conventional Permian Basin assets for $1 billion, producing ~26,000 BOE per day.

Investors can gain exposure to XOM via EA Series Trust Strive U.S. Energy ETF DRLL and Vanguard Energy Index Fund ETF VDE.

Price Action: XOM shares are up 0.38% at $119.08 premarket at the last check Wednesday.

Photo via Midjourney

Read Next:

• Exxon Mobil To Cut 400 Texas Jobs In Stages Through 2026