Exxon Mobil Corporation (NYSE: XOM) and LG Chem announced on Wednesday the signing of a non-binding memorandum of understanding for a multi-year offtake agreement for up to 100,000 metric tons of lithium carbonate.
The lithium is to be supplied from ExxonMobil’s planned project in the United States to LG Chem’s cathode facility in Tennessee, which broke ground in December 2023 and is expected to have an annual production capacity of 60,000 tons.
“America needs secure domestic supply of critical minerals like lithium,” Dan Ammann, President of ExxonMobil Low Carbon Solutions, said in a press 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.”
Stock Performance
The shares of Exxon Mobil Corporation (XOM) closed 1.42% ($1.69) higher at $120.32 in New York on Wednesday, as they reversed a loss from the previous market session.
The company’s total market cap now stands at $528.817 billion.
The shares of Exxon Mobil Corporation (XOM) went down 9.36% in 2023, compared with a 24.23% gain for the benchmark index, S&P 500 (SPX).
The company’s shares have risen 20.34% so far this year.
Analyst stock price forecast and recommendation
According to TipRanks, at least 12 out of 20 surveyed investment analysts had rated Exxon Mobil Corp’s stock as “Buy”, while 7 – as “Hold”. The median price target on the stock stands at $131.20, which translates into a 9.04% upside compared to the closing price on Wednesday.
The high point of the analyst forecast range stands at $149.00.
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