Oil companies getting involved in lithium production? Yes. Global EV battery manufacturer SK On has signed a nonbinding memorandum of understanding (MOU) with ExxonMobil for a potential lithium offtake agreement.

The terms enable SK On to explore a multiyear agreement that would allow it to secure up to 100,000 metric tons of lithium from ExxonMobil’s project in Arkansas for SK On’s battery plants in the US. BlueOval SK, a joint venture between SK On and automaker Ford, plans to operate two battery plants in Kentucky, and one in Tennessee.

Through an appraisal drilling program and technology pilot, ExxonMobil has produced lithium carbonate from the Smackover formation in southern Arkansas using direct lithium extraction (DLE), which the company says is more efficient and has less environmental impact than hard rock mining. The lithium extracted from subterranean saltwater deposits will be converted on-site into battery-grade material.

“SK On has been working with global partners to secure key battery raw materials in a move to support our growing US manufacturing base and lead electrification in the region,” said Park Jong-jin, Executive Vice President of Strategic Procurement at SK On.

Source: SK On