ExxonMobil has partnered with LG Chem to enter the lithium market and strengthen the domestic supply chain for critical minerals.
The agreement involves the supply of 100,000 tons of lithium carbonate for the production of electric vehicle batteries. The lithium will come from ExxonMobil's upcoming project in the United States, specifically for LG Chem's cathode manufacturing facility in Tennessee.
This partnership aims to enhance the security of the lithium supply chain within the U.S. and contribute to the broader electric vehicle movement. ExxonMobil plans to use Direct Lithium Extraction (DLE) technology, which is more environmentally friendly compared to traditional mining methods.
The demand for lithium is expected to increase as the world transitions to renewable energy and electric mobility. The collaboration between ExxonMobil and LG Chem represents a shift in the energy sector towards diversification and sustainability.
It also helps the United States reduce its dependence on foreign sources of critical minerals and supports the growth of the electric vehicle market. The partnership exemplifies the importance of collaboration in shaping the future of the industry.