Exxon Mobil signed an agreement Tuesday to supply lithium to an EV battery plant in Tennessee, deepening the oil major’s ties to the critical minerals sector.
Under the deal, Exxon will supply up to 100,000 tons of lithium carbonate — a key component of vehicle batteries — from its planned direct lithium extraction project in Arkansas’ Smackover region to South Korean-owned LG Chem’s facility, which broke ground last year. Exxon inked a similar deal with the Korean battery maker, SK On, last year.
Exxon is hoping to cement its position as a leading producer of lithium. The company’s agreements are part of a broader effort among U.S. oil companies to diversify their oil- and gas-focused portfolios as EVs grab a larger market share of domestic passenger transportation.
“America needs secure domestic supply of critical minerals like lithium,” Dan Ammann, Exxon’s president of low carbon solutions, said in a statement. “ExxonMobil is proud to lead the way in establishing domestic lithium production, creating jobs, driving economic growth, and enhancing energy security here in the United States.”
