ExxonMobil Signs MOU with SK On to Supply Mobil Lithium for EV Batteries in the US
ExxonMobil, one of the leading multinational oil and gas corporations, has signed a non-binding memorandum of understanding (MOU) with SK On, a prominent global electric vehicle (EV) battery developer. The MOU opens up the opportunity for a potential multiyear offtake agreement, securing up to 100,000 metric tons of Mobil Lithium from ExxonMobil’s planned lithium project in Arkansas. SK On intends to utilize this lithium in its EV battery manufacturing operations within the United States. This collaboration aligns with ExxonMobil’s goal, which was announced in late 2023, to become a significant supplier for electric vehicles by 2030.
Additionally, ExxonMobil has obtained an exemption from Canadian oil and gas reporting obligations, as stated by the securities commissions for the provinces of Alberta and Ontario. The decision document, known as the Decision, provides ExxonMobil with exemptive relief from the disclosure requirements outlined in National Instrument 51-101 Standards of Disclosure for Oil and Gas Activities (NI 51-101). However, certain conditions mentioned in the Decision must be met for this relief to be effective.
ExxonMobil’s recent announcement outlines its plans to establish itself as a leading producer of lithium, a crucial component in the manufacturing of EV batteries. The company has already initiated work on the first phase of its North American lithium production, focusing on southwest Arkansas, an area renowned for significant lithium deposits. Branded as Mobil Lithium, this product offering builds on ExxonMobil’s extensive technical partnership history with the automotive industry.
In summary, ExxonMobil’s signing of an MOU with SK On marks a significant step towards securing a long-term agreement for the supply of Mobil Lithium, contributing to the company’s ambition of becoming a top EV battery supplier by 2030. Furthermore, obtaining exemption from Canadian reporting obligations demonstrates ExxonMobil’s commitment to navigating regulatory requirements efficiently. With its ongoing efforts in establishing lithium production in Arkansas, ExxonMobil aims to play a crucial role in meeting the growing demand for EV batteries.
ExxonMobil Ventures into Lithium Production for Electric Vehicles, Partners with SK On
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