I read the following article from Bloomberg this morning and the...

I read the following article from Bloomberg this morning and the last paragraph really stuck out to me.  Specifically, the risks of deploying DLE on a commercial scale (see highlighted section below).
One way for Exxon to de-risk this is to buy an established deliverer of DLE at scale...... LTM/ ALTM(US).
The old Livent was the leading exponent of DLE with their own patented system which is being used at their Argentine operations and could be of significant value to a new market entrant like Exxon.
Also, we know that LTM/ ALTM is trading at a pittance of its value and could possibly be a nice bolt-on acquisition for a firm like Exxon.
They now have skin in the game following the execution of this supply agreement with SK On so would be a natural buyer of Arcadium given the proprietary technology (DLE) and the portfolio of growth projects that would give Exxon immediate scale in this fledgling market.
Food for thought!!

Exxon Signs Deal to Supply Lithium to South Korean Battery Giant

• Agreement would provide SK On with metal from Arkansas deposit
• Oil major seeks to bring lithium project online by 2027

By Mark Burton
June 26, 2024 at 1:20 AM GMT+10


Exxon Mobil Corp. signed a preliminary agreement to supply South Korean battery-maker SK On Co. with lithium from a deposit it’s developing in Arkansas, deepening the oil major’s connections to the rapidly growing electric-vehicle industry.

The multiyear deal will cover the sale of as much as 100,000 tons of lithium, and will support Exxon’s ambition to supply raw materials for about 1 million EV batteries a year by 2030, the company said in a statement.

Exxon announced its move into lithium at the peak of a rally in battery metals in a rare effort to diversify away from oil and gas. It’s ploughing ahead with the expansion, despite a slump in prices and a growing backlash against electric vehicles in the US.
“The world needs more lithium to support its emissions goals, and we’re doing our part to drive solutions forward in the United States,” said Dan Ammann, president of ExxonMobil Low Carbon Solutions.

Exxon plans to bring its first lithium project online in 2027 and says potential customers still see a surge in demand for the metal key to powering EVs toward the end of the decade. It plans to employ a method called direct lithium extraction that’s not currently deployed at scale, raising risks over the timing and cost of its entry into the market. It will use a third party to speed up the process.