LG Energy Solution signs 10-year US lithium supply deal with Smackover Lithium

LG Energy Solution is strengthening its efforts to source critical minerals locally in North America by signing a 10-year lithium supply agreement with a U.S. developer as the company anticipates growing demand for electric vehicles (EVs) and energy storage systems (ESS). The company announced on Tuesday that it has entered into a 10-year deal to procure lithium carbonate from U.S.-based lithium developer Smackover Lithium.

According to the agreement, LG Energy Solution will receive a total of 80,000 metric tons of lithium carbonate over a decade, with shipments commencing in 2029 when Smackover Lithium is projected to commence commercial production. The company stated that the volume of lithium carbonate is sufficient to manufacture batteries for approximately 1.8 million high-performance EVs capable of traveling over 500 kilometers on a single charge.

Lee Kang-yeol, LG Energy Solution’s procurement center leader, remarked that the agreement represents a significant step towards establishing a robust and resilient supply chain, ensuring the competitiveness of their products in key strategic markets. By integrating both battery production and sourcing within the United States, LG Energy Solution aims to deliver competitive and sustainable solutions.