Exxon, South Korea's SK On sign non-binding deal for lithium supply

SK

25/06/2024 16:27

June 25 (Reuters) - U.S. energy major Exxon Mobil
 XOM.N  said on Tuesday it had signed a non-binding agreement to
supply lithium from its proposed Arkansas project to South
Korean EV battery maker SK On.
    The agreement has the potential to be a multi-year offtake
deal of up to 100,000 metric tons, the company said. 
    Exxon in November announced plans to produce lithium from
pumped out brine in Arkansas, from regions considered to hold
significant deposits of the metal.
        SK On, a unit of SK Innovation  034730.KS , intends to
use the lithium for making EV batteries in the U.S.
    The company, which supplies to Volkswagen  VOWG.DE  and Ford
Motor  F.N , operates two facilities for making batteries in
Georgia. It is building four more plants jointly with
automakers. 
    "Through this partnership with ExxonMobil, we will continue
strengthening battery supply chains in the U.S.," said Park
Jong-jin, executive vice president of strategic procurement at
SK On.

 (Reporting by Sourasis Bose in Bengaluru; Editing by Mohammed
Safi Shamsi)
 ((Sourasis.Bose@thomsonreuters.com))