Smackover seals 10-year lithium-supply deal with LG
The Arkansas-based producer will supply LG with 8,000 metric tonnes of battery-grade lithium for ten years.
LG Energy Solution has signed a 10-year lithium supply agreement with Smackover Lithium, aiming to establish a domestic US supply chain for the critical mineral. Under the terms of the deal, Smackover will provide LG with 8,000 metric tonnes of battery-grade lithium carbonate per year for a decade, generated at the South West Arkansas (SWA) project. The material is anticipated to meet US foreign entity concerns requirements.
The agreement represents a significant step towards building a robust and resilient supply chain, ensuring LG's products remain competitive in key strategic markets, according to Kang Yeol Lee, Procurement Center Leader of LG Energy Solution. By integrating battery production and sourcing within the United States, LG aims to deliver cost-competitive and sustainable products to customers driving the global energy storage and electric vehicle markets.
The agreement bolsters LG's position amid rising lithium demand, supporting the Trump administration's initiatives to boost US critical minerals production and minimize reliance on foreign suppliers. This is the second offtake agreement Smackover Lithium, a collaboration between Standard Lithium Ltd. (TSX-V, NYSE: SLI) and Norway’s Equinor (NYSE: EQNR), has secured this year. In March, they signed a similar agreement with commodities trader Trafigura to supply 8,000 tonnes annually of lithium carbonate over ten years.
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