The agreement, inked at in Fastmarkets LRBM Conference 2024, the world's largest lithium and battery raw materials conference in Las Vegas on June 24, aims to bolster SK On's supply chain of U.S.-sourced lithium, a critical component in electric vehicle batteries. ExxonMobil plans to extract lithium using direct lithium extraction (DLE) technology, which is considered more environmentally friendly than traditional methods.
"We will continue to secure critical minerals that meet U.S. Inflation Reduction Act (IRA) requirements to ensure benefits for consumers in the key North American market," said Park Jong-jin, executive vice president of strategic procurement at SK On.
The move comes as battery manufacturers seek to comply with regulations such as the IRA, which offers tax credits for electric vehicles assembled in North America using locally sourced materials. The specific supply timeline and quantities will be determined upon finalization of the contract, SK On said.
