ExxonMobil names new partner to bolster US lithium supply chain with offtake agreement

ev supplies en route

LG Chem’s Tennessee cathode plant, which began construction in December 2023, is designed for an annual production capacity of 60,000 tons and provides strategic geographic access for customer deliveries and raw material imports. Rendering via ExxonMobil

Spring-headquartered ExxonMobil Corp. has announced a new MOU for an offtake agreement for up to 100,000 metric tons of lithium carbonate.

The agreement is with LG Chem, which is building its cathode plant in Tennessee and expects it to be the largest of its kind in the country. The project broke ground a year ago and expects an annual production capacity of 60,000 tons. The lithium will be supplied by ExxonMobil.

“America needs secure domestic supply of critical minerals like lithium,” Dan Ammann, president of ExxonMobil Low Carbon Solutions, says in a news release. “ExxonMobil is proud to lead the way in establishing domestic lithium production, creating jobs, driving economic growth, and enhancing energy security here in the United States.”

The industry currently has a lithium supply shortage due to the material's use in electric vehicle batteries and the fact that most of production happens overseas.

“Building a lithium supply chain with ExxonMobil, one of the world’s largest energy companies, holds great significance,” Shin Hak-cheol, CEO of LG Chem, adds. “We will continue to strengthen LG Chem’s competitiveness in the global supply chain for critical minerals.”

Per the release, the final investment decision is still pending.

Earlier this year, Exxon entered into another energy transition partnership, teaming up with Japan’s Mitsubishi to potentially produce low-carbon ammonia and nearly carbon-free hydrogen at ExxonMobil’s facility in Baytown.

Last month, the company announced it had signed the biggest offshore carbon dioxide storage lease in the U.S. ExxonMobil says the more than 271,000-acre site, being leased from the Texas General Land Office, complements the onshore CO2 storage portfolio that it’s assembling.

From Your Site Articles

The offshore site is adjacent to a CO2 pipeline network that ExxonMobil acquired in 2023 with its $4.9 billion purchase of Plano-based Denbury Resources. Photo via ExxonMobil.com

ExxonMobil signs biggest offshore CCS lease in the U.S.

big deal

Spring-based ExxonMobil continues to ramp up its carbon capture and storage business with a new offshore lease and a new CCS customer.

On October 10, ExxonMobil announced it had signed the biggest offshore carbon dioxide storage lease in the U.S. ExxonMobil says the more than 271,000-acre site, being leased from the Texas General Land Office, complements the onshore CO2 storage portfolio that it’s assembling.

“This is yet another sign of our commitment to CCS and the strides we’ve been able to make,” Dan Ammann, president of ExxonMobil Low Carbon Solutions, says in a news release.

The offshore site is adjacent to a CO2 pipeline network that ExxonMobil acquired in 2023 with its $4.9 billion purchase of Plano-based Denbury Resources.

Ammann told Forbes that when it comes to available acreage in the Gulf Coast, this site is “the largest and most attractive from a geological point of view.”

The initial customer for the newly purchased site will be Northbrook, Illinois-based CF Industries, Forbes reported.

This summer, ExxonMobil sealed a deal to remove up to 500,000 metric tons of CO2 each year from CF’s nitrogen plant in Yazoo City, Mississippi. CF has earmarked about $100 million to build a CO2 dehydration and compression unit at the plant.

A couple of days before the lease announcement, Ammann said in a LinkedIn post that ExxonMobil had agreed to transport and annually store up to 1.2 metric tons of CO2 from the $1.6 billion New Generation Gas Gathering (NG3) pipeline project in Louisiana. Houston-based Momentum Midstream is developing NG3, which will collect and treat natural gas produced in Texas and Louisiana and deliver it to Gulf Coast markets.

This is ExxonMobil’s first CCS deal with a natural gas processor and fifth CCS deal agreement overall. To date, ExxonMobil has contracts in place for storage of up to 6.7 metric tons of CO2 per year.

“I’m proud that even more industries are choosing our #CCS solutions to meet their emissions reduction goals,” Ammann wrote on LinkedIn.

ExxonMobil says it operates the largest CO2 pipeline network in the U.S.

“The most fundamental thing we’re focused on is making sure the CO2 is stored safely and securely,” Ammann told Forbes in addressing fears that captured CO2 could seep back into the atmosphere.

The off-take agreement will provide SK On with ExxonMobil's lithium produced in Arkansas. Photo via exxonmobil.com

ExxonMobil enters into off-take agreement with EV battery manufacturer

it's a deal

ExxonMobil has signed a non-binding memorandum of understanding with South Korean electric vehicle battery developer SK On.

The deal aims to secure a multiyear off-take agreement of up to 100,000 metric tons of MobilTM Lithium from the company’s first planned project in Arkansas. SK On will use the lithium in its EV battery manufacturing operations in the United States, which will contribute to ExxonMobil’s 2023 goal of supplying lithium for nearly 1 million EV batteries annually by 2030, and also assist in the build out of a U.S. EV supply chain.

The Arkansas project proposes an extraction of lithium from underground saltwater deposits and converting it into battery-grade material onsite. The approach will produce lithium more efficiently and with fewer environmental impacts than traditional hard rock mining, according to ExxonMobil. Consumer electronics, energy storage systems, and other clean energy technologies have all shown increased use in lithium needs.

The planned production of MobilTM Lithium will use ExxonMobil's core capabilities in drilling, subsurface exploration, and chemical processing, which should offer U.S. EV battery manufacturers a lower-carbon lithium supply option.

“The world needs more lithium to support its emissions goals, and we're doing our part to drive solutions forward in the United States,” Dan Ammann, president of ExxonMobil Low Carbon Solutions, says in a news release. “This collaboration with SK On demonstrates the leading role we play in the growing market for domestically sourced lithium, a market that’s advancing energy security and climate objectives, as well as supporting American manufacturing."

The annual production capacity of SK On in the U.S. alone is expected to reach more than 180 GWh in 2025. That production is enough to power around 1.7 million EVs per year.

“Through this partnership with ExxonMobil, we will continue strengthening battery supply chains in the U.S.,” Park Jong-jin, executive vice president of Strategic Procurement at SK On, adds.

The Houston-based executive makes the list of along with John Kerry, Bill Gates, and more. Photo via exxonmobil.com

ExxonMobil’s Low Carbon Solution president makes inaugural TIME100 Climate list

big praise

A Houston energy executive has made the cut on an inaugural ranking of top climate action leaders.

TIME magazine’s first-ever TIME100 Climate list, which highlights “100 of the world’s most influential leaders driving climate action in business,” and ExxonMobil’s president of Low Carbon Solution business Dan Ammann has made it onto the list.

“The real credit goes to the ExxonMobil Low Carbon Solutions team for the progress we’ve made so far,“ Amann says in a LinkedIn post. “It’s great to see the world recognizing that ExxonMobil has a major role to play in accelerating the world’s path to net zero.”

The list also includes John Kerry, the U.S. Special Presidential Envoy for Climate; Bill Gates, founder of Breakthrough Energy Ventures; and others.

Some of ExxonMobil’s recent highlights include the announcement of a plan to become a leading supplier of lithium to support electric vehicles, reaching a new milestone in the volume of CO2 emissions that the company agreed to store for industrial customers along the U.S. Gulf Coast – up to 5 million metric tons per year, expanded ability to further reduce emissions by acquiring the largest CO2 pipeline network in the U.S.C, and working on building the world’s largest low-carbon hydrogen plant in Baytown, which is outside of Houston.

“It’s great to be included in this prestigious list and I’m proud of the team’s efforts to advance real solutions that will help reduce the world’s emissions,” Ammann says in ExxonMobil's news release.

He joined ExxonMobil in 2022 following a career in Silicon Valley as CEO of Cruise, as well as stops in Detroit as president of General Motors and on Wall Street when he was managing director at Morgan Stanley.

The rig stands 225 feet tall and extends 8,000 feet below the subsurface. Photo via exxonmobil.com

ExxonMobil breaks ground on Texas carbon dioxide storage project

digging in

ExxonMobil announced this month that it has officially broken ground on a groundbreaking carbon dioxide storage site.

According to a release from the company, a new rig is currently being used to gather information about an underground site in Southeast Texas. The rig stands 225 feet tall, but more importantly extends 8,000 feet below the subsurface to investigate if the site is a safe place to store carbon underground.

“Everyone’s excited about this appraisal well because we’re literally breaking ground on a new chapter of our work to help reduce industrial emissions,” Joe Colletti, who oversees carbon capture and storage development along the Gulf Coast for Exxon, says in a statement.

Exxon plans to move the rig to other sites in the Gulf Coast in the future for clients Nucor Corp., CF Industries and Linde.

In the last year, Exxon has made agreements with these regional companies to store carbon captured from their operations.

Exxon agreed to transport and permanently store up to 2.2 million metric tons of carbon dioxide each year from Linde’s hydrogen production facility in Beaumont, Texas when it launches in 2025.
Exxon agreed to store up to 2 million metric tons per year of CO2 captured from CF Industries’ ammonia plant in Donaldsonville, Louisiana, starting in 2025.
Exxon agreed to capture, transport and store up to 800,000 metric tons per year of CO2 from Nucor’s direct reduced iron manufacturing site in Convent, Louisiana starting in 2026.

Together, the three agreements represent a total of 5 million metric tons per year that Exxon plans to transport and store for third-party customers.

“Our agreement with Nucor is the latest example of how we’re delivering on our mission to help accelerate the world's path to net zero and build a compelling new business,” Dan Ammann, president of ExxonMobil Low Carbon Solutions, says in a statement over the summer. “Momentum is building as customers recognize our ability to solve emission challenges at scale.”

In addition to the carbon storage agreements, the energy giant also completed the acquisition of Denbury Inc. this month in an all-stock transaction valued at $4.9 billion. The deal adds more than 1,300 miles, including nearly 925 miles of CO2 pipelines in Louisiana, Texas and Mississippi to Exxon's CO2 pipeline network.

The deal was first announced this summer.

ExxonMobil has placed a big bet on the carbon capture market. Photo via exxonmobil.com

Newly Houston-headquartered ExxonMobil acquires carbon capture company in $4.9B deal

M&A Moves

Spring-based energy giant ExxonMobil is making a nearly $5 billion bet on its future in the carbon capture sector.

ExxonMobil announced July 13 that it has agreed to buy Plano-based Denbury, a publicly traded company specializing in carbon capture, utilization, and storage (CCUS), in an all-stock deal valued at $4.9 billion. The deal’s value is based on ExxonMobil’s July 12 closing stock price — $89.45 per share.

Darren Woods, chairman and CEO of ExxonMobil, says the pending acquisition of Denbury “reflects our determination to profitably grow” his company’s low-carbon business unit.

The deal will give ExxonMobil the largest CO2 pipeline network in the U.S. at 1,300 miles, including nearly 925 miles in Texas, Louisiana, and Mississippi, along with 10 onshore carbon sequestration sites.

Dan Ammann, president of ExxonMobil Low Carbon Solutions, says Denbury’s CO2 infrastructure “provides significant opportunities to expand and accelerate ExxonMobil’s low-carbon leadership across our Gulf Coast value chains.”

“Once fully developed and optimized,” Ammann adds, “this combination of assets and capabilities has the potential to profitably reduce emissions by more than 100 million metric tons per year in one of the highest-emitting regions of the U.S.”

ExxonMobil explains that CCUS — when carbon dioxide is captured and stored deep underground instead of being released into the atmosphere — is viewed as critical to meeting net-zero goals. The company forecasts the global market for CCUS will catapult to $4 trillion by 2050. Houston-based consulting firm Rystad Energy predicts total spending on CCUS projects in 2023 will reach $7.4 billion.

In addition to Denbury’s CCUS assets, the deal with ExxonMobil includes Gulf Coast and Rocky Mountain oil and natural gas operations. These assets consist of reserves exceeding the equivalent of 200 million barrels of oil, with 47,000 oil-equivalent barrels per day of current production.

Directors at ExxonMobil and Denbury have unanimously approved the deal, which is expected to close in the fourth quarter of 2023.

Denbury, founded in 1951, posted $1.7 billion in revenue last year, up from 36 percent from 2021.

Chris Kendall, president and CEO of Denbury, launched his oil and gas career at Mobil Oil. Mobil merged with Exxon in 1999 to form the country’s largest oil and gas company, which just made official its headquarters relocation from Irving to Spring.

ExxonMobil generated revenue of nearly $413.7 billion in 2022, making it one of the country’s biggest publicly traded companies.

Ad Placement 300x100

Ad Placement 300x600

CultureMap Emails are Awesome

Property Showcase

Houston energy expert discusses why hydrogen still has a future

Guets Column

Not long ago, hydrogen was hailed as the next big thing in clean energy. Investors poured in, and countries from Japan to Germany built ambitious hydrogen strategies. It wasn’t a new discovery; hydrogen has been used for over a century in refineries and fertilizers, but it suddenly found itself reborn as the world began working toward decarbonization.

When hydrogen burns, the only byproduct is water. Green hydrogen, produced with renewable power, could replace fossil fuels in everything from trucks to ships to steel mills. But the momentum has cooled. Costs remain stubbornly high, several projects have been delayed or canceled, and policy support has wavered. In the U.S., a change in administration has created uncertainty. In Europe, some governments are slowing funding or revising hydrogen mandates. Even the International Maritime Organization (IMO) recently postponed a key vote on fuel-carbon standards.

Yet as Mike Graff , former Chairman and CEO of American Air Liquide, said in an Energy Forum episode with Ed Emmett at Rice University’s Baker Institute, “The world is always looking to make sure that energy is first available, it’s affordable, and then it’s clean. And I see hydrogen over time evolving in that manner.” He also noted that “companies have produced hydrogen and utilized hydrogen for over 100 years, and they’ve done that very safely… I think we can continue that moving forward.”

China has doubled down on hydrogen as part of its industrial strategy, building massive electrolyzer manufacturing capacity and funding dozens of pilot projects across transportation and heavy industry. Japan and South Korea also stand out as examples of how sustained policy support can drive hydrogen progress.

Where Hydrogen Fits Today

To understand hydrogen’s role now, it helps to remember what it actually does. About 76 percent of global hydrogen is produced from natural gas and used in refineries, fertilizer plants, and chemical production. This so-called “gray hydrogen” is essential but carbon-intensive.

What’s new is the rise of low-carbon hydrogen, “blue” hydrogen made from natural gas with carbon capture, and “green” hydrogen produced by splitting water with renewable electricity. These methods are expensive, but they’re growing. According to the International Energy Agency, global low-emissions hydrogen output rose about 10 percent in 2024.

Hydrogen is also expanding beyond industry. As Graff explained, it already powers thousands of forklifts in warehouses across the U.S. and is beginning to appear in commercial trucking, locomotives, and even aviation prototypes. “You can now drive 600 to 800 miles on a hydrogen fuel-cell truck,” he noted, “and refuel in 30 minutes, just like you would refill for diesel.”

The Cost Challenge and a Gulf Coast Opportunity

So why the slowdown? One word: economics.

Even with generous tax credits, green hydrogen can cost two to three times more than conventional fuels. Electrolyzers are still expensive, though costs are falling as Chinese suppliers introduce low-cost alternatives.

Infrastructure is another hurdle. Pipelines, storage, and fueling networks need to be built from scratch.

But those same challenges point to opportunity, especially along the U.S. Gulf Coast. The region already has one of the world’s largest hydrogen pipeline systems and a well-established energy infrastructure. Texas, in particular, has a head start. It already hosts nearly 1,000 miles of hydrogen pipelines, about 64 percent of the U.S. total, and some of the world’s largest hydrogen storage sites at Moss Bluff, Spindletop, and Clemens. Out of 140 hydrogen plants operating nationwide, 43 are in Texas, supported by extensive refining and natural gas infrastructure. This combination of assets gives the Gulf Coast an unmatched foundation to scale low-carbon hydrogen and integrate production, storage, and end use across industries.

As Ken Medlock , Senior Director of the Center for Energy Studies at Rice University’s Baker Institute, explains in his report: Developing a Robust Hydrogen Market in Texas, Texas has all the critical elements needed to lead in a low-carbon hydrogen economy, including existing infrastructure, a skilled workforce, and proximity to industrial demand centers. That combination gives it a distinct advantage in scaling up hydrogen production and use.

Governments around the world are showing renewed confidence in hydrogen. The European Commission awarded nearly €3 billion to 13 major projects, while Japan and South Korea continue expanding fueling networks. China is leading one of the most ambitious buildouts, with more than 50 planned hydrogen projects and a rapidly growing fleet of fuel-cell vehicles. Despite recent setbacks, global investment has surpassed $100 billion, and projects in places such as Chile, where strong renewables and low-cost Chinese equipment help make projects feasible, are moving toward final investment decisions.

What Comes Next

Hydrogen’s future won’t depend on replacing every fuel, but on filling the gaps where batteries and biofuels fall short.

Transportation: This is where momentum is strongest today. Batteries dominate cars, but hydrogen fuel cells excel in heavy trucks, ships, and planes. As Graff noted, “You can design a commercial vehicle with the same utility as diesel but powered by hydrogen.” Airbus and Boeing are testing hydrogen propulsion concepts, and several ports are experimenting with hydrogen bunkering for cargo ships.

Industry: Steel, cement, and chemicals account for a quarter of global emissions. Hydrogen-based direct-reduced-iron (DRI) steelmaking is being piloted in Europe and Asia and could transform how these materials are produced at scale.

Storage: Hydrogen can store energy for days or weeks, serving as backup for renewables like wind and solar. But storage remains very costly and may only prove viable for the “last mile” of greenhouse gas reduction or grid stability.

These uses may sound niche, but that’s how technologies scale. They start small, gain an economic foothold, and expand as costs decline.

Conclusion

Hydrogen's early, perhaps irrational, exuberance may have cooled, but amidst the rubble of cancelled projects are the beginnings of an industry that could play a vital niche role on the journey towards a lower carbon intensity energy future. As costs fall and infrastructure around the world expands, hydrogen's role will expand into the nooks and crannies of the energy industry.

It won't replace every fuel, but it doesn't have to. Success will come from steady, project-by-project progress.

-----------

Scott Nyquist is a senior advisor at McKinsey & Company and vice chairman, Houston Energy Transition Initiative of the Greater Houston Partnership. The views expressed herein are Nyquist's own and not those of McKinsey & Company or of the Greater Houston Partnership. This article originally appeared on LinkedIn.

Houston energy startup launches to power AI data centers with Microsoft agreement

power move

Buoyed by a purchase agreement from Microsoft, Houston-based Joulent recently launched to build power plants that meet the electricity demands of AI data centers and other computing-heavy industries.

Joulent builds dedicated power-generating facilities that feed directly into data centers and other power-dependent facilities, eliminating the need for companies to siphon power from grids. Joulent’s plants combine generation, storage and smart controls in a modular, scalable setup, according to a news release.

Investment firm Engine No. 1 established Joulent in collaboration with energy technology company GE Vernova.

Joulent’s first project, the Project Kilby natural gas facility in West Texas, will be co-located with a Microsoft data center. It’ll deliver about 2.67 gigawatts of power under a 20-year deal between Microsoft and Energy Forge One, a subsidiary of Houston-based Chevron. Engine No. 1 and Chevron teamed up to build the plant.

GE Vernova will supply most of the plant’s power capacity, with additional capacity coming from Solar Turbines, a subsidiary of Irving-based construction and mining equipment manufacturer Caterpillar.

“Leadership in the AI era will be determined by who can deliver energy and compute the fastest, most reliably, and at the lowest cost,” Chris James, founder and CEO of Engine No. 1 and Joulent, said in a news release.

“By building new power-generating facilities, Joulent enables customers across industries to power the next chapter of American innovation, while reducing pressure on existing grids and maintaining affordability for ratepayers.”

6 Houston greentech cos. named world's best & more top energy headlines

Trending News

Editor's note: Summer is heating up with big news in the energy transition sector, from Time's World's Top GreenTech Companies of 2026 to ExxonMobil's new Texas legal HQ. Below are the five most-read EnergyCapitalHTX stories published June 15-30, 2026:

1. 6 Houston companies earn recognition on Time’s global greentech list 2026

Six Houston-area businesses appear on Time magazine’s 2026 list of the world’s top greentech companies, with a high-flying name leading the pack. The highest-ranked local company is Houston-based geothermal power producer Fervo Energy, which claims the No. 4 spot—up from No. 14 last year. Continue reading.

2. Houston-based Syzygy lands global customer for first commercial SAF plant

Houston-based Syzygy lands global customer for first commercial SAF plant

Houston-based Syzygy Plasmonics has secured a major future customer for its sustainable aviation fuel. Syzygy has entered into a capacity reservation agreement with World Fuel Services, a global fuel distribution and logistics company. Through the deal, World Fuel has reserved a portion of Syzygy's SAF production for future plants slated for Central and South America. The clean fuel will be produced at Syzygy’s NovaSAF-1 facility in Uruguay, which is moving toward construction. Continue reading.

3. Fervo promotes strategy leader to COO as flagship geothermal project nears launch

Houston geothermal unicorn Fervo Energy has named Sarah Jewett as its new COO. Jewett steps into the role as the company prepares for its flagship Cape Station geothermal project to deliver its first power later this year. Jewett joined Fervo in 2020 as director of strategy and most recently served as the company's senior vice president of strategy. Continue reading.

4. UH study finds Gulf Coast best positioned for emerging carbon removal technology

The Gulf Coast is an ideal spot for deploying a new ocean-based carbon removal technology that uses seawater to capture and store carbon dioxide, according to a new study from the University of Houston. The study was led by UH Cullen College of Engineering Professor Mim Rahimi and published in Nature’s Communications Sustainability journal. Abdelrahman Refaie, a PhD student at UH, authored the paper. It aimed to develop a plan for implementing an electrochemical marine carbon dioxide removal (e-mCDR) technology that treats seawater to increase the ocean’s ability to absorb and store carbon dioxide from the air. Continue reading.

5. ExxonMobil announces date to move legal headquarters to Texas

Energy giant Exxon Mobil Corp. has set a date to move its legal headquarters to Texas. The Spring-based company announced that the redomiciliation from New Jersey to Texas is expected to be effective July 1. Exxon's board of directors unanimously recommended redomiciling in the Lone Star State in March, and shareholders approved the move to Texas at the company’s annual meeting in May. Continue reading.

View All Listings

ENERGYCAPITALHTX EMAILS ARE AWESOME