Exxon Mobil signs non-binding lithium supply deal with LG Chem [Yahoo! Finance]
Exxon Mobil Corporation (XOM)
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Source: Yahoo! Finance
maker LG Chem, the oil giant's second agreement to supply the electric vehicle battery metal from its proposed Arkansas project. Exxon last year announced plans to extract lithium from the Smackover Formation, an underground deposit of salty water known as brine that stretches from Florida through Arkansas and into Texas, using at least one type of direct lithium extraction (DLE) technology. Exxon and other oil companies such as Occidental Petroleum and Equinor are increasingly investing in lithium projects, partly due to their belief that extracting the metal from brine involves similar processes as petroleum extraction. The LG Chem agreement, which would require Arkansas officials to set a state lithium royalty rate to be finalized, is for up to 100,000 metric tons of the ultralight metal over several years. The move allows Exxon - which plans to self-fund its Arkansas project - to incorporate LG Chem's lithium quality specifications into its design plans. South Korea-based
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