EV battery maker SK On has signed a non-binding settlement to purchase lithium from ExxonMobil’s first deliberate extraction challenge in Arkansas.
Sk On and ExxonMobil’s large lithium deal
Sk On and ExxonMobil signed a non-binding memorandum of understanding (MOU) that has the potential for a multiyear offtake settlement of as much as 100,000 metric tons of lithium.
South Korea-headquartered SK On will use the lithium to fabricate EV batteries within the US. It has two battery-making factories in Georgia, and it’s constructing 4 extra battery factories collectively with automakers. SK On provides its US-made EV batteries to Hyundai, Volkswagen, and Ford (their BlueOval SK Battery Park picture is above).
In November 2023, ExxonMobil introduced that it was drilling its first lithium properly in southern Arkansas after it acquired rights to 120,000 gross acres of the Smackover Formation, certainly one of North America’s most plentiful lithium assets.
The Arkansas challenge will extract lithium from underground saltwater deposits and convert it into battery-grade materials onsite. Exxon asserts that this technique will produce lithium extra effectively and with fewer environmental impacts than conventional onerous rock mining.
ExxonMobil set a aim in late 2023 to produce lithium for round 1 million EV batteries yearly by 2030, and it’s concentrating on 2027 for first manufacturing.
Electrek’s Take
That is excellent news for the US EV business and for constructing a home provide chain.
ExxonMobil has a web zero by 2050 plan. Nevertheless, a big weak point within the firm’s technique is focusing solely on Scope 1 and Scope 2 emissions from its operations and the power it consumes. The fossil gas large’s plan doesn’t deal with Scope 3 emissions shoppers produce utilizing ExxonMobil’s fossil gas merchandise. Scope 3 emissions usually characterize the most important share of oil and gasoline firms’ whole carbon footprint.
Out of the 5 Western oil giants, Exxon is the one firm that hasn’t set Scope 3 targets. The truth is, sued its local weather activist traders to dam their Scope 3 goal proposal from going to vote at its annual investor assembly.
So ExxonMobil’s pursuit of lithium extraction isn’t as a result of it cares about decreasing its emissions. It’s as a result of it’s a good enterprise transfer, it is aware of easy methods to extract issues from the earth, and it is aware of the EV revolution isn’t going to gradual, so it’s getting on the bandwagon. Hey, no matter it takes.
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