Skip to main content

EV battery maker SK On to buy 100k metric tons of Arkansas lithium from ExxonMobil

EV battery maker SK On has signed a non-binding agreement to buy lithium from ExxonMobil’s first planned extraction project in Arkansas.

Sk On and ExxonMobil’s big lithium deal

Sk On and ExxonMobil signed a non-binding memorandum of understanding (MOU) that has the potential for a multiyear offtake agreement of up to 100,000 metric tons of lithium.

South Korea-headquartered SK On will use the lithium to manufacture EV batteries in the US. It has two battery-making factories in Georgia, and it’s building four more battery factories jointly with automakers. SK On supplies its US-made EV batteries to Hyundai, Volkswagen, and Ford (their BlueOval SK Battery Park image is above).

In November 2023, ExxonMobil announced that it was drilling its first lithium well in southern Arkansas after it acquired rights to 120,000 gross acres of the Smackover Formation, one of North America’s most plentiful lithium resources. 

The Arkansas project will extract lithium from underground saltwater deposits and convert it into battery-grade material onsite. Exxon asserts that this method will produce lithium more efficiently and with fewer environmental impacts than traditional hard rock mining. 

ExxonMobil set a goal in late 2023 to supply lithium for around 1 million EV batteries annually by 2030, and it’s targeting 2027 for first production.

Electrek’s Take

This is good news for the US EV industry and for building a domestic supply chain.

ExxonMobil has a net zero by 2050 plan. However, a significant weakness in the company’s strategy is focusing only on Scope 1 and Scope 2 emissions from its operations and the energy it consumes. The fossil fuel giant’s plan doesn’t address Scope 3 emissions consumers produce using ExxonMobil’s fossil fuel products. Scope 3 emissions often represent the largest share of oil and gas companies’ total carbon footprint.

Out of the five Western oil giants, Exxon is the only company that hasn’t set Scope 3 targets. In fact, sued its climate activist investors to block their Scope 3 target proposal from going to vote at its annual investor meeting.

So ExxonMobil’s pursuit of lithium extraction isn’t because it cares about reducing its emissions. It’s because it’s a good business move, it knows how to extract things from the earth, and it knows the EV revolution isn’t going to slow, so it’s getting on the bandwagon. Hey, whatever it takes.


If you’re an electric vehicle owner, charge up your car at home with rooftop solar panels. To make sure you find a trusted, reliable solar installer near you that offers competitive pricing on solar, check out EnergySage, a free service that makes it easy for you to go solar. They have hundreds of pre-vetted solar installers competing for your business, ensuring you get high quality solutions and save 20-30% compared to going it alone. Plus, it’s free to use and you won’t get sales calls until you select an installer and share your phone number with them. 

Your personalized solar quotes are easy to compare online and you’ll get access to unbiased Energy Advisers to help you every step of the way. Get started here. –affiliate link*

FTC: We use income earning auto affiliate links. More.

Stay up to date with the latest content by subscribing to Electrek on Google News. You’re reading Electrek— experts who break news about Tesla, electric vehicles, and green energy, day after day. Be sure to check out our homepage for all the latest news, and follow Electrek on Twitter, Facebook, and LinkedIn to stay in the loop. Don’t know where to start? Check out our YouTube channel for the latest reviews.

Comments

Author

Avatar for Michelle Lewis Michelle Lewis

Michelle Lewis is a writer and editor on Electrek and an editor on DroneDJ, 9to5Mac, and 9to5Google. She lives in White River Junction, Vermont. She has previously worked for Fast Company, the Guardian, News Deeply, Time, and others. Message Michelle on Twitter or at michelle@9to5mac.com. Check out her personal blog.


Manage push notifications

notification icon
We would like to show you notifications for the latest news and updates.
notification icon
You are subscribed to notifications
notification icon
We would like to show you notifications for the latest news and updates.
notification icon
You are subscribed to notifications