LG Energy Solution announced it has signed a multi-year binding offtake agreement with Smackover Lithium for battery-quality lithium carbonate.
Under the contract, Smackover Lithium, a partnership between Standard Lithium and Equinor, will supply LG Energy Solution with 8,000 metric tonnes of lithium carbonate annually over a 10-year period. The lithium carbonate will come from the South West Arkansas (SWA) Project located in Arkansas. Construction of the project is expected to commence in 2026 with first commercial production targeted in 2029.
“We are pleased to begin this partnership with Smackover Lithium and the agreement marks another step toward establishing a solid and resilient supply chain that keeps our products competitive in key strategic markets,” said Kang Yeol Lee, Procurement Center Leader of LG Energy Solution. “By bringing both battery production and sourcing to the U.S., we will deliver competitive and sustainable products to our customers driving the global energy storage and EV markets.”
LG ES operates seven production facilities in the U.S., including three standalone sites, and most of them already have established production capacity for batteries utilizing LFP chemistry. By combining its U.S. manufacturing footprint with Smackover Lithium’s lithium carbonate, LG ES has secured a fully integrated local supply chain from sourcing to production.
Smackover Lithium’s lithium carbonate will also be produced using a direct lithium extraction (DLE) and purification process, thereby ensuring a more sustainable supply of materials, the companies say.
“We are excited to be entering into this agreement with LG Energy Solution,” said David Park, CEO of Standard Lithium. “We expect this to be the beginning of a long and mutually beneficial partnership whereby we will provide LG Energy Solution with a long-term supply of U.S.-based and sustainably produced battery-quality lithium carbonate.”
News item from LG ES