Ford EV Partner SK Signs MOU With Exxon For American Lithium

In spite of a global slowdown in demand for all-electric vehicles, Ford EV partner SK On continues to move forward with its expansion plans – much of which involve securing the raw materials it needs to build EV batteries for years to come. In fact, SK sees this slowdown as merely temporary, and believes that the longer term outlook for the EV market is far rosier – and that’s precisely why it continues to sign deals with all sorts of materials suppliers.

The latest in that long line of deals is with ExxonMobil, as SK On has signed a non-binding memorandum of understanding (MOU) with that company for a potential lithium offtake agreement in the U.S. As part of the MOU, SK can also explore a multi-year agreement that will allow the South Korean battery maker to secure up to 100,000 metric tons of lithium from ExxonMobil’s project in Arkansas. In the meantime, SK plans to use the lithium it secures from ExxonMobil in its battery plants in the U.S. – including its own Commerce, Georgia facilities, as well as the under-construction joint-venture with Ford dubbed BlueOvalSK Battery Park in Kentucky.

“SK On has been working with global partners to secure key battery raw materials in a move to support our growing U.S. manufacturing base and lead electrification in the region,” said Park Jong-jin, Executive Vice President of Strategic Procurement at SK On. “Through this partnership with Exxon Mobil, we will continue strengthening battery supply chain in the U.S.”

This new MOU only adds to SK’s growing domestic raw materials pipeline after it previously signed deals with Westwater Resources, Global Lithium Resources, and Lake Resources – the latter of which also entered into an agreement with Ford back in 2022.

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