LG Energy Solution has entered into a binding offtake agreement with Smackover Lithium for 8,000t of battery-quality lithium carbonate. <\/p>\n
Smackover, a joint venture between Standard Lithium, which holds a 55% stake, and Equinor, holding 45%, will supply lithium carbonate to LG Energy Solution every year over the next ten years. <\/p>\n
The lithium carbonate will be sourced from the South West Arkansas (SWA) Project and produced in the US. <\/p>\n
The deal will enable LG Energy Solution to build a fully integrated local supply chain for its battery production processes, which include multiple manufacturing facilities across the US. <\/p>\n
Most of these facilities already have production capacity focused on lithium iron phosphate battery chemistry. <\/p>\n
The lithium carbonate from the SWA Project will be produced using a direct lithium extraction (DLE) and purification process. <\/p>\n
This approach is intended to achieve a more sustainable method of sourcing the material. <\/p>\n
Standard Lithium CEO David Park said: “We are excited to be entering into this agreement with LG Energy Solution, one of the world’s leading battery producers with a diverse and global customer base and a presence in many dynamic and growing industry segments. <\/p>\n
“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 US-based and sustainably produced battery-quality lithium carbonate.” <\/p>\n
Demand for power storage systems in North America is increasing and battery manufacturers are prioritising the procurement of stable supplies of materials from within the region. <\/p>\n
The agreement aligns with LG Energy Solution’s strategy to secure essential raw materials for battery manufacturing and to diversify its supplier base by region. <\/p>\n
The contract also supports the company in meeting non-Prohibited Foreign Entity requirements for cathode materials in its batteries. <\/p>\n
The SWA Project is situated around 24km west of Magnolia in Columbia County and 11km south of Lewisville in Lafayette County. <\/p>\n