LG Energy Solution announced that it has signed a multi-year binding offtake agreement with Smackover Lithium for battery-quality lithium carbonate. Smackover Lithium is a partnership between Standard Lithium Ltd. and Equinor, an international energy company. Under the agreement, Smackover Lithium will supply 8,000 metric tonnes of lithium carbonate each year for 10 years.
The company said the contract supports its efforts to secure a stable supply of locally produced cathode materials for energy storage system batteries in North America, where rising power demand continues to drive market growth. LG Energy Solution noted that the lithium carbonate will be sourced from the South West Arkansas Project in Arkansas and will meet non-Prohibited Foreign Entity requirements, which are increasingly important in the U.S. battery market.
LG Energy Solution operates seven production facilities in the United States, including three standalone sites. The company said most of these facilities already have established production capacity for batteries using lithium iron phosphate chemistry. With the addition of lithium carbonate from Smackover Lithium, LG Energy Solution said it now has a fully integrated local supply chain from sourcing to production.
Smackover Lithium’s lithium carbonate will be produced using a direct lithium extraction and purification process. The companies said this approach is intended to support a more sustainable supply of battery materials. Direct lithium extraction has become an important focus in the industry because it can offer a different production pathway than conventional evaporation-based methods.
LG Energy Solution said the agreement strengthens its supply chain strategy in the United States and supports its competitiveness in key strategic markets. The company added that it continues to diversify its sourcing by region and build supply resilience in response to shifting regulatory conditions.
David Park, CEO of Standard Lithium, said the agreement represents the beginning of what he expects to be a long-term partnership centered on U.S.-based and sustainably produced battery-quality lithium carbonate. Kang Yeol Lee, Procurement Center Leader of LG Energy Solution, said the deal is another step toward building a resilient supply chain that supports customers in the global energy storage and electric vehicle markets.
Source: LG Energy Solution
