LITTLE ROCK, Ark — ExxonMobil has now announced that they have signed an agreement between themselves and SK On, which is a South Korean company that is a global leading electric vehicle (EV) battery developer.
Last year, Governor Sarah Huckabee Sanders announced that ExxonMobil would soon be drilling its first lithium well in south Arkansas and making an early investment in what could be one of the largest supplies of lithium in North America.
The agreement between ExxonMobil and SK On will now open the door to an offtake agreement, which is an arrangement between both a buyer and producer to buy or sell portions of the producer's goods.
This agreement will be for no more than 100,000 metric tons of MobilTM Lithium from the company's first planned project in Arkansas.
Southwest Arkansas has a history as an oil and natural gas producer, and ExxonMobil will be working alongside state officials to build up the state's emerging lithium industry.
Exxon has said that by 2030 it expects to supply the manufacturing needs for over 1 million electric vehicles and the first production is targeted for 2027.
The demand for lithium has been forecasted to grow quickly within the coming years since it is an essential component in electric vehicles, energy storage systems, consumer electronics, and many other clean energy technologies.
The project will allow for lithium to be extracted from underground saltwater deposits and then it will then be converted into battery-grade materials in Arkansas.
Southwest Arkansas has a history as an oil and natural gas producer, and ExxonMobil will be working alongside state officials to build up the state's emerging lithium industry.
“When we utilize what’s under our own two feet, we can create jobs, expand our economy, and make life more affordable for Arkansans. ExxonMobil’s lithium well will enhance the Natural State’s role in achieving American-led energy innovation and help curb inflation caused by high energy prices,” said Representative Steve Womack (AR-03).
This approach to extracting and converting lithium will be more efficient and allow for fewer environmental impacts than what would be the case with 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."
For more information regarding the agreement between ExxonMobil and SK On, please click here.
