ExxonMobil and EV battery maker SK On sign MOU regarding U.S. produced Mobil™ Lithium

SK On seeking multiyear supply, up to 100,000 metric tons, of lithium from ExxonMobil for U.S.-based EV battery manufacturing

• Agreement signals demand for domestically sourced Mobil™ Lithium and marks a milestone in building out U.S. electric vehicle and battery supply chains
• Domestic lithium production contributes to energy security, supports U.S. manufacturing jobs and reduces carbon emissions

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

“This collaboration with SK On demonstrates the leading role we play in the growing market for domestically sourced lithium, a market that’s advancing energy security and climate objectives, as well as supporting American manufacturing.”

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.

“The world needs more lithium to support its emissions goals, and we're doing our part to drive solutions forward in the United States,” said Dan Ammann, President of ExxonMobil Low Carbon Solutions. “This collaboration with SK On demonstrates the leading role we play in the growing market for domestically sourced lithium, a market that’s advancing energy security and climate objectives, as well as supporting American manufacturing."

Planned production of Mobil™ 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.

“SK On has been working with global partners to secure key battery raw materials in a move to support our growing U.S. manufacturing base and lead electrification in the region,” said Park Jong-jin, Executive Vice President of Strategic Procurement at SK On. “Through this partnership with ExxonMobil, we will continue strengthening battery supply chains in the U.S.”

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The corporation’s primary businesses - Upstream, Product Solutions and Low Carbon Solutions – provide products that enable modern life, including energy, chemicals, lubricants, and lower emissions technologies. ExxonMobil holds an industry-leading portfolio of resources, and is one of the largest integrated fuels, lubricants, and chemical companies in the world. ExxonMobil also owns and operates the largest CO2 pipeline network in the United States. In 2021, ExxonMobil announced Scope 1 and 2 greenhouse gas emission-reduction plans for 2030 for operated assets, compared to 2016 levels. The plans are to achieve a 20-30% reduction in corporate-wide greenhouse gas intensity; a 40-50% reduction in greenhouse gas intensity of upstream operations; a 70-80% reduction in corporate-wide methane intensity; and a 60-70% reduction in corporate-wide flaring intensity.

With advancements in technology and the support of clear and consistent government policies, ExxonMobil aims to achieve net-zero Scope 1 and 2 greenhouse gas emissions from its operated assets by 2050. To learn more, visit exxonmobil.com and ExxonMobil’s Advancing Climate Solutions.

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Statements of future events, investments, or partnerships in this release are forward-looking statements. Actual future results, including project plans, partner participation, timing, capacities, and costs could differ materially depending on a number of factors including the ability to execute operational objectives on a timely and successful basis; implementation of government frameworks and permitting for carbon capture and storage, hydrogen, ammonia and other lower-emission technologies; timely completion of construction projects; commercial and consumer interest in lower-emissions opportunities; changes in plans or objectives prior to final funding decisions or project startups; unforeseen technical or operational difficulties; and other factors discussed under the heading Factors Affecting Future Results in the Investors section of our website at www.exxonmobil.com. Any forward-looking statement speaks only as of the date of this press release and the companies named herein disclaim any obligation to update any forward-looking statement.

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