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Released November 21, 2024 | SUGAR LAND
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Written by Daniel Graeber for Industrial Info Resources (Sugar Land, Texas)--Amid something of a market glut for lithium, Exxon Mobil Corporation (NYSE:XOM) (Spring, Texas)
on Wednesday said it signed a preliminary deal to deliver lithium carbonate to an LG Chem (Seoul, South Korea) battery plant in Tennessee.
ExxonMobil and LG Chem signed a non-binding memorandum of understanding (MOU) for the multi-year offtake of as much as 100,000 metric tons of lithium carbonate.
LG Chem broke ground on its cathode plant in Tennessee in December, with a nameplate production capacity of 60,000 tons. Both parties believe the facility will be the largest of its kind once mass production ramps up during the second half of 2025. Subscribers to Industrial Info's Global Market Intelligence (GMI) Metals & Minerals Project Database can learn more by viewing the project report.
The manufacturing plant is supported by a $3.2 billion investment. Peak capacity is expected to provide enough material for 1.2 million electric vehicle batteries per year.
"America needs secure domestic supply of critical minerals like lithium," said Dan Ammann, the president of Exxon's low-carbon solutions division. "ExxonMobil is proud to lead the way in establishing domestic lithium production, creating jobs, driving economic growth, and enhancing energy security here in the United States."
Feedstock would come from Exxon's lithium facility in Arkansas, which the company said could be a leading supplier of lithium products for the automotive industry by 2030.
Exxon acquired rights to explore 120,000 gross acres in the Smackover formation in southern Arkansas, among the more prolific lithium basins in North America. The first phase of operations at the facility began in early 2023.
The energy company aims to use conventional oil and gas drilling techniques to tap lithium-rich brine located in reservoirs 10,000 feet below ground. It will utilize the direct lithium extraction (DLE) method to separate minerals from the brine, rather than conventional open-pit mining techniques. Subscribers can learn more by viewing the project report.
The National Renewable Energy Laboratory sees promise in DLE, though it has its opponents due to the amount of water required. ExxonMobil, however, said reinjecting the brine back into the original reservoir could allay some of those concerns.
The lithium sector is becoming saturated as the take-up of electric vehicles (EV) has been slower than expected. Both Toyota Motor Corporation (NYSE:TM) (Toyota City, Japan) and Ford Motor Company (NYSE:F) (Dearborn, Michigan) have scaled back their electric vehicle initiatives this year, with Toyota saying it would favor hybrids over full-electric vehicles.
Pointing to a 25% decline in year-on-year pricing in the lithium markets, lithium mega-producer Albemarle Corporation (NYSE:ALB) (Charlotte, North Carolina) last week posted a $1.1 billion loss during the third quarter, adding it would shed about 6% of its global workforce and cut its planned capital spending for next year by 50% relative to 2024 levels of about $850 million.
Incentives outlined by outgoing U.S. President Joe Biden are aimed at building a domestic supply chain for minerals such as lithium that are seen as necessary for an energy transition away from fossil fuels. An avid supporter of the oil and gas industry, it's unclear what President-elect Donald Trump will do for lithium.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
ExxonMobil and LG Chem signed a non-binding memorandum of understanding (MOU) for the multi-year offtake of as much as 100,000 metric tons of lithium carbonate.
LG Chem broke ground on its cathode plant in Tennessee in December, with a nameplate production capacity of 60,000 tons. Both parties believe the facility will be the largest of its kind once mass production ramps up during the second half of 2025. Subscribers to Industrial Info's Global Market Intelligence (GMI) Metals & Minerals Project Database can learn more by viewing the project report.
The manufacturing plant is supported by a $3.2 billion investment. Peak capacity is expected to provide enough material for 1.2 million electric vehicle batteries per year.
"America needs secure domestic supply of critical minerals like lithium," said Dan Ammann, the president of Exxon's low-carbon solutions division. "ExxonMobil is proud to lead the way in establishing domestic lithium production, creating jobs, driving economic growth, and enhancing energy security here in the United States."
Feedstock would come from Exxon's lithium facility in Arkansas, which the company said could be a leading supplier of lithium products for the automotive industry by 2030.
Exxon acquired rights to explore 120,000 gross acres in the Smackover formation in southern Arkansas, among the more prolific lithium basins in North America. The first phase of operations at the facility began in early 2023.
The energy company aims to use conventional oil and gas drilling techniques to tap lithium-rich brine located in reservoirs 10,000 feet below ground. It will utilize the direct lithium extraction (DLE) method to separate minerals from the brine, rather than conventional open-pit mining techniques. Subscribers can learn more by viewing the project report.
The National Renewable Energy Laboratory sees promise in DLE, though it has its opponents due to the amount of water required. ExxonMobil, however, said reinjecting the brine back into the original reservoir could allay some of those concerns.
The lithium sector is becoming saturated as the take-up of electric vehicles (EV) has been slower than expected. Both Toyota Motor Corporation (NYSE:TM) (Toyota City, Japan) and Ford Motor Company (NYSE:F) (Dearborn, Michigan) have scaled back their electric vehicle initiatives this year, with Toyota saying it would favor hybrids over full-electric vehicles.
Pointing to a 25% decline in year-on-year pricing in the lithium markets, lithium mega-producer Albemarle Corporation (NYSE:ALB) (Charlotte, North Carolina) last week posted a $1.1 billion loss during the third quarter, adding it would shed about 6% of its global workforce and cut its planned capital spending for next year by 50% relative to 2024 levels of about $850 million.
Incentives outlined by outgoing U.S. President Joe Biden are aimed at building a domestic supply chain for minerals such as lithium that are seen as necessary for an energy transition away from fossil fuels. An avid supporter of the oil and gas industry, it's unclear what President-elect Donald Trump will do for lithium.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
