Asia Tech Wire (June 26) -- U.S. chemical giant ExxonMobil will supply up to 100,000 tons of lithium to South Korean electric vehicle battery maker SK On.

ExxonMobil announced on Tuesday that it has signed a non-binding agreement to supply SK On with lithium from its first planned project in Arkansas.

The agreement has the potential to be a multi-year offtake agreement for up to 100,000 tons of lithium.

SK On plans to use the lithium in its electric vehicle battery production in the U.S., ExxonMobil added.

In the U.S., SK On currently operates two battery plants in Commerce, Georgia, and is building four more through joint ventures with Ford Motor and Hyundai Motor.

After 2025, SK On has an expected annual production capacity of more than 180 GWh in the US alone, which will be able to power about 1.7 million electric vehicles per year.