South Korea\u2019s LG Energy Solution (LGES) has announced it has signed a multi-year binding offtake agreement with Smackover Lithium for battery-quality lithium carbonate.<\/p>\n
Under the contract, Smackover Lithium, a partnership between Standard Lithium Ltd. and Equinor, an international energy company, will supply LG Energy Solution with 8,000 metric tonnes of lithium carbonate annually over a 10-year period, LGES said.<\/p>\n
Through the contract, LG Energy Solution will secure lithium carbonate produced from the South West Arkansas (SWA) Project located in Arkansas, thereby obtaining a key cathode material that meets non-PFE requirements.\u00a0<\/p>\n
The company operates seven production facilities in the US, including three standalone sites, and most of them already have established production capacity for batteries utilizing LFP chemistry. By combining its strong US manufacturing footprint with Smackover Lithium\u2019s lithium carbonate, the company now has secured a fully integrated local supply chain from sourcing to production.<\/p>\n
Smackover Lithium\u2019s lithium carbonate will also be produced using a direct lithium extraction (DLE) and purification process, thereby ensuring a more sustainable supply of materials, LGES said.<\/p>\n
\u201cWe are excited to be entering into this agreement with LG Energy Solution, one of the world\u2019s leading battery producers with a diverse and global customer base and a presence in many dynamic and growing industry segments,\u201d said David Park, CEO of Standard Lithium. \u201cWe 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.\u201d<\/p>\n
\u201cWe are pleased to begin this partnership with Smackover Lithium and the agreement marks another step toward establishing a solid and resilient supply chain that keeps our products competitive in key strategic markets,\u201d said Kang Yeol Lee, Procurement Center Leader of LG Energy Solution. \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
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