On the 21st, LG Chem Vice Chairman Shin Hak-cheol (right) and ExxonMobil Vice President Dan Holton signed a MOU and posed for a commemorative photo. (LG Chem)

<이미지를 클릭하시면 크게 보실 수 있습니다>

South Korea’s LG Chem Ltd., a leading producer of cathode materials for electric vehicle (EV) batteries, has signed a deal with ExxonMobil Corp., the world’s largest oil and energy company, for the supply of lithium carbonate.

According to LG Chem on Thursday, under the agreement, ExxonMobil will provide lithium sourced from its brine field in Arkansas, which will be transported to LG Chem’s Tennessee plant, located about three hours away.

The lithium supplied by ExxonMobil will be used by LG Chem to produce cathode materials, a critical component in EV battery manufacturing.

Lithium accounts for 60–70 percent of the production cost of cathode materials.

ExxonMobil acquired its Arkansas brine field, spanning 147,000 acres, last year. The site is estimated to contain four million tons of lithium carbonate, enough to produce batteries for 50 million electric vehicles.

Through this agreement, LG Chem plans to secure 100,000 tons of lithium carbonate from ExxonMobil starting in 2030 for up to 10 years.

This long-term supply is expected to establish a stable lithium-cathode-battery value chain in North America.

LG Chem said that the company will also collaborate with ExxonMobil on joint research and development for direct lithium extraction (DLE) technologies to maximize business synergies.

LG Chem’s Tennessee plant, which broke ground in December 2023, is the largest cathode materials factory in the United States, with an annual production capacity of 60,000 tons.

Strategically located in the southeastern U.S., the plant offers excellent logistical access for delivering products to clients and sourcing raw materials.