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 lithium carbonate is expected to be supplied from ExxonMobil’s planned project in the Smackover formation in southern Arkansas to LG Chem’s cathode manufacturing plant in Tennessee.
Construction of the LG Chem cathode plant in Tennessee began in December 2023. Once completed, the facility is projected to have an annual production capacity of 60,000 tonnes, making it the largest cathode plant in the United States. The company aims to commence production in 2026. The total investment for the project amounts to approximately $1.6 billion.
In June 2024, ExxonMobil had already entered into a similar non-binding memorandum of understanding with SK On. This agreement also involves the supply of 100,000 tonnes of lithium carbonate over multiple years. ExxonMobil plans to use direct lithium extraction methods to obtain the material from its project in the Smackover formation.
Source: Battery News, ExxonMobil
