[News Space=Reporter seungwon lee] LG Chem is strengthening its competitiveness in the supply of key minerals by establishing a lithium supply chain in the United States.

LG Chem announced on the 21st that it has signed a business agreement to supply lithium carbonate with ExxonMobil, the world's largest oil and energy company.

Under this agreement, ExxonMobil will supply lithium produced at a lithium salt lake in Arkansas, Texas, to LG Chem's Tennessee plant, located about three hours away, and LG Chem will produce cathode materials.

ExxonMobil acquired a 147 million-square-foot Arkansas salt lake last year and began mining lithium using direct lithium extraction (DLE) technology in November of the same year. The salt lake is estimated to contain 4 million tons of lithium carbonate, enough to produce batteries for 50 million electric vehicles.

DLE (Direct Lithium Extraction) is a technology that directly extracts lithium from salt condensate produced by natural evaporation from brine. It is more environmentally friendly as it produces less carbon emissions than mining using explosives.

 In addition, LG Chem plans to maximize business synergy by conducting joint research and development with ExxonMobil on various materials, such as RO filters (Membrane) necessary for developing direct lithium extraction technology.

Through this agreement, LG Chem will secure 100,000 tons of lithium carbonate from ExxonMobil for up to 10 years starting in 2030, thereby establishing a stable supply chain linking lithium, cathode materials, and batteries in North America.

LG Chem's Tennessee plant, which began construction in December of last year, is the largest cathode material plant in the U.S. with an annual production capacity of 60,000 tons. Located in the central eastern part of the U.S., it offers excellent geographical accessibility for supplying to customers and importing raw materials.

Dan Ammann, CEO of ExxonMobil Low Carbon Solutions, said, “Through this agreement between our two companies, we will lead the global lithium market,” adding, “We will lead the U.S. lithium industry and contribute to carbon reduction, job creation, and economic growth.”

LG Chem Vice Chairman Shin Hak-cheol said, “It is very meaningful that we have established a lithium supply chain with ExxonMobil, the world’s largest oil company,” and “We will continue to strengthen the competitiveness of LG Chem’s global supply chain for key minerals.”

Meanwhile, LG Chem is continuing to invest in securing key battery materials, including signing a contract with Piedmont Lithium of the U.S. to supply 200,000 tons of lithium concentrate to ensure a stable supply of raw materials and cost competitiveness.