IRVING (dpa-AFX) - Exxon Mobil Corp. (XOM), an oil and gas company, announced on Wednesday that it has inked a non-binding memorandum of understanding or MoU with LG Chem, a South Korean chemicals firm, for a multiyear offtake deal for up to 100,000 tons of lithium carbonate.
The lithium will be supplied from ExxonMobil's planned project in the U.S. to LG Chem's cathode plant in Tennessee.
LG Chem's Tennessee cathode plant broke ground in 2023 and is expected to have an annual production capacity of 60,000 tons.
This offers U.S. EV battery makers a domestically extracted and processed lithium supply option which is expected to have substantially lower environmental impacts, including approximately two-thirds less carbon intensity than hard rock mining.
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