SK On, a leading global electric vehicle (EV) battery manufacturer, has announced a strategic step forward by signing a non-binding memorandum of understanding (MOU) with ExxonMobil. This preliminary agreement sets the stage for a potential multi-year lithium offtake arrangement in the United States, marking a significant move to strengthen the battery supply chain in the region.

Under the terms of the MOU, SK On may secure up to 100,000 metric tons of lithium from ExxonMobil’s project in Arkansas. Details regarding the contract duration and supply volumes are expected to be finalized in subsequent negotiations. This agreement was announced on the sidelines of the Fastmarkets Lithium Supply and Battery Raw Materials Conference in Las Vegas on June 24th.

SK On, part of South Korea’s SK Group—the country’s second-largest conglomerate—currently operates two EV battery plants in Commerce, Georgia. In collaboration with Ford Motor Co. through the BlueOval SK joint venture, SK On is also constructing three additional battery plants in the U.S.: two in Glendale, Kentucky, and one in Stanton, Tennessee. Furthermore, a partnership with Hyundai Motor Group is facilitating the development of another EV battery plant in Bartow County, Georgia.

Post-2025, SK On’s annual production capacity in the U.S. is projected to exceed 180 GWh, sufficient to power approximately 1.7 million EVs annually, illustrating a robust expansion in American EV battery production capabilities.

For ExxonMobil, the MOU aligns with its objective to supply lithium for over one million EV batteries each year by 2030, thereby supporting the U.S. initiative to develop a domestic EV supply chain. ExxonMobil has pioneered lithium carbonate production from the Smackover formation in southern Arkansas using innovative Direct Lithium Extraction (DLE) technology. This process is designed to be more efficient and environmentally friendly than traditional mining methods.

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

Park Jong-jin, Executive Vice President of Strategic Procurement at SK On, also highlighted the broader implications of the agreement: “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,” he said. “Through this partnership with ExxonMobil, we will continue strengthening the battery supply chain in the U.S.”

  battery supply chain, electric vehicle batteries, Energy Security, EV Battery, ExxonMobil, lithium offtake, Lithium Supply, SK On, U.S. EV production, U.S. Manufacturing