EXXONMOBIL AND EV BATTERY MAKER SK ON SIGN MOU REGARDING U.S. PRODUCED MOBIL™ LITHIUM

ExxonMobil has signed a non-binding memorandum of understanding (MOU) with SK On, a leading global electric vehicle (EV) battery developer, that opens the door to secure a multiyear offtake agreement of up to 100,000 metric tons of Mobil^TM Lithium from the company’s first planned project in Arkansas. SK On plans to use lithium in its EV battery manufacturing operations in the United States. This will contribute to ExxonMobil’s goal, announced in late 2023, of supplying lithium for about 1 million EV batteries annually by 2030 and support the build out of a U.S. EV supply chain.

Demand for lithium is forecasted to grow sharply in coming years, as it is an essential component for EVs, consumer electronics, energy storage systems, and other clean energy technologies. The planned project will extract lithium from underground saltwater deposits and convert it into battery-grade material onsite in Arkansas. This approach aims to produce lithium more efficiently and with fewer environmental impacts than traditional hard rock mining.

Planned production of Mobil^TM Lithium will use ExxonMobil's core capabilities in subsurface exploration, drilling, and chemical processing, offering U.S. EV battery manufacturers a more secure, lower-carbon lithium supply option. Through the appraisal drilling program and technology pilot using Direct Lithium Extraction (DLE) technology, ExxonMobil has successfully produced lithium carbonate from the Smackover formation in southern Arkansas.

In the U.S., SK On currently operates two battery plants in Commerce, Georgia, and is building four more plants through joint ventures with Ford Motor Co. and Hyundai Motor Group. After 2025, the annual production capacity of SK On in the U.S. alone is expected to reach more than 180 GWh, which is enough to power about 1.7 million EVs a year.