When a battery maker controls its own US lithium supply, the competitive advantage is no longer just in chemistry<\/p>\n
LG Energy Solution has signed a 10-year binding offtake agreement with Smackover Lithium for 8,000 metric tonnes of battery-quality lithium carbonate annually, securing US-produced material for its North American battery operations. Smackover Lithium, a partnership of Standard Lithium and Equinor, will supply the material from its South West Arkansas (SWA) project using a direct lithium extraction (DLE) process.<\/p>\n
The lithium carbonate will meet non-Prohibited Foreign Entity (non-PFE) requirements, a qualification increasingly critical as US battery supply policy tightens. LG Energy Solution operates seven US production facilities, including three standalone sites, most of which have established capacity for lithium iron phosphate (LFP) battery chemistry. Combining Smackover\u2019s Arkansas-sourced material with that manufacturing base completes a locally integrated supply chain from extraction to finished cell.<\/p>\n
DLE recovers lithium directly from subsurface brine, avoiding the land and water intensity of conventional evaporation-pond methods. The approach meets the sustainability criteria increasingly required by both automaker customers and energy storage procurement frameworks.<\/p>\n
In a statement, Kang Yeol Lee, Procurement Centre Leader of LG Energy Solution, said: \u201cBy 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.\u201d<\/p>\n
David Park, Chief Executive of Standard Lithium, described the agreement as the start of a long-term partnership providing LG Energy Solution with sustainably produced, US-based lithium carbonate. The contracted volumes will be produced through the SWA project, the foundation of Smackover Lithium\u2019s domestic production plan.<\/p>\n