South Korean battery manufacturer SK On has signed a non-binding Memorandum of Understanding (MOU) with ExxonMobil for the supply of lithium in the United States. With the agreement, SK On aims to secure a stable supply of key minerals for batteries in the US.
Extracting with less environmental impact
The MOU allows SK On to explore a multi-year agreement which would enable the company to purchase up to 100,000 tons of lithium from an ExxonMobil project in Arkansas. In the geological Smackover Formation, the US oil company is producing lithium carbonate through a direct lithium extraction pilot project. The goal is to extract lithium more efficiently and with less environmental impact than conventional hard rock mining.
Capacity to reach 180 gigawatt-hours
SK On currently operates two battery factories in the US state of Georgia. Seven additional battery plants in the United States are planned or under construction through partnerships with Ford and Hyundai. According to the company, SK Onʼs annual production capacity in the US will increase to more than 180 gigawatt-hours after the year 2025.
