LG Chem and ExxonMobil have signed a non-binding letter of intent for a multi-year purchase of up to 100,000 tonnes of lithium carbonate. The material would be supplied from a planned ExxonMobil project in the US to an LG Chem cathode plant in Tennessee.
Largest cathode plant in the United States
Construction of the LG Chem cathode plant in Tennessee began in December 2023. The new facility is expected to reach an annual production capacity of 60,000 tonnes. This would make it the largest of its kind in the United States. At the time of the start of construction, the company claimed to be producing from 2026 on. The projectʼs total investment amounts to approximately 1.6 billion US dollars.
Lithium from the Smackover formation
In June 2024, the company had already signed a similar non-binding memorandum of understanding, with SK On. This agreement also provides for the supply of 100,000 tonnes of lithium carbonate over a multi-year span. ExxonMobil intends to supply both customers from its project in the Smackover formation in southern Arkansas. The company intends to use direct lithium extraction to gain the material.
Sources:
https://corporate.exxonmobil.com/news/news-releases/2024/1120_exxonmobil-and-lg-chem-sign-mou-for-lithium-offtake
https://www.prnewswire.com/news-releases/lg-chem-takes-leap-as-top-cathode-supplier-in-the-us-with-groundbreaking-of-tennessee-plant-302019565.html