LG Chem and ExxonMobil sign MOU for lithium offtake
23 November 2024
Exxon Mobil Corporation and LG Chem have signed a non-binding memorandum of understanding (MOU) for a multiyear offtake agreement for up to 100,000 metric tons of lithium carbonate. The lithium will be supplied from ExxonMobil’s planned project in the US to LG Chem’s cathode plant in Tennessee, which LG Chem expects to be the largest of its kind in the US.
Final investment decision will be subject to various factors including the establishment of commercially competitive regulatory frameworks. The planned production of Mobil Lithium will utilize Direct Lithium Extraction (DLE) technology, aligning with ExxonMobil’s core competencies in subsurface exploration, drilling, and chemical processing.
This approach offers US EV battery manufacturers a domestically extracted and processed lithium supply option which is expected to have substantially lower environmental impacts, including approximately two-thirds less carbon intensity than hard rock mining.
Ho-hum.
Another early-stages investment/ plan/ preliminary arrangement along the monotonous and onerous journey of critical source exploitation and supply chain/ refining/ assembly/ distribution that will likely lead to part-decades of legal and political wrangling and a 1-in-100 useful activity. Absurd.
It may be nice, if we are interested in 'big picture' data, to have an overview of all the US/EU exploitation locations, current status, and their mineral potential -- surely a valuable resource for all would-be future-green-tech Investors and Enthusiasts alike...
Posted by: Jer | 23 November 2024 at 06:37 AM
Why invest in a technology doomed to die? Chinese CATL, the largest battery manufacturer worldwide, is diverting from Lithium to Sodium which is far cheaper and in the end run - with less energy density - achieves an equivalent range, is easier accessible and is far more durable and safer than Li. Sodium is less detrimental to temperature effects than Li, has higher life expectancy, is far cheaper and cannot be monopolized as is the case with Li.
Posted by: yoatmon | 24 November 2024 at 07:22 AM
"Challenges for Sodium-ion Battery
Despite the advantages, sodium ion battery manufacturing needs to overcome several challenges before it can be widely adopted as a replacement for lithium-ion batteries.
Lack of a well-established supply chain for the materials used in the batteries.
Since the technology is still in its infancy, very few companies operate in this segment, leading to higher cost of batteries.
The technology to make sodium-ion batteries is still in the early stages of development.
Sodium-ion based batteries have limitations of flexibility as they cannot be turned into various shapes like prismatic, cylindrical etc.
These are less dense and have less storage capacity compared to lithium-based batteries.
Existing sodium-ion batteries have a cycle life of 5,000 times, significantly lower than the cycle life of commercial lithium iron phosphate batteries, which is 8,000-10,000 times.
Can Sodium-based Batteries Replace Lithium-ion Batteries?
While there are many potential advantages to using sodium-ion batteries over lithium-ion batteries, there are also several challenges that need to be overcome before they can be widely adopted as a replacement.
If sodium-ion batteries are to become the backbone of the energy storage industry, they must continue to improve their technical performance. Researchers are working to improve the performance and stability of the batteries, as well as to reduce their cost, while companies are looking to establish a supply chain for the materials used in the batteries."
https://www.gep.com/blog/strategy/lithium-ion-vs-sodium-ion-battery
Due to uncertainties in Sodium-ion battery tech, LG Chem can't affort to put all eggs in one basket. It must continue to secure its supply chain in order to remain in business.
Posted by: Roger Pham | 25 November 2024 at 02:53 PM
I can see using sodium ion batteries in stationery applications overall the amount of lithium saved the cost reductions could pay off when you're talking large scale.
Posted by: SJC | 27 November 2024 at 01:45 PM