LG Energy Solution signs 10-year US lithium supply deal with Smackover Lithium
Summary
LG Energy Solution said Tuesday it signed a 10-year lithium carbonate supply deal with U.S.-based Smackover Lithium. The agreement covers 80,000 metric tons and is set to begin deliveries in 2029. The company said the deal supports North American localization of battery supply chains and helps meet U.S. Inflation Reduction Act sourcing requirements.
Key Facts
- The agreement covers 80,000 metric tons of lithium carbonate over 10 years.
- Deliveries are set to begin in 2029, when Smackover Lithium is expected to start commercial production.
- LG Energy Solution said the volume could support batteries for about 1.8 million high-performance EVs with a range of more than 500 kilometers on a single charge.
- Smackover Lithium is a joint venture of Standard Lithium and Norwegian state-owned energy company Equinor.
- LG Energy Solution said it has eight production facilities in North America, either operating or under development.
LG Energy Solution's Ochang plant in Cheongju, North Chungcheong Province / Courtesy of LG Energy Solution
LG Energy Solution is deepening its push to localize critical-mineral sourcing in North America, securing a long-term lithium supply deal with a U.S. developer as it prepares for rising demand for electric vehicles (EV) and energy storage systems (ESS).
The company said on Tuesday that it has signed a 10-year deal to secure lithium carbonate from U.S.-based lithium developer Smackover Lithium.
Under the agreement, the company will receive a total of 80,000 metric tons of lithium carbonate over 10 years, with deliveries set to begin in 2029, when Smackover Lithium is expected to start commercial production. It said the volume is enough to make batteries for about 1.8 million high-performance EVs with a range of more than 500 kilometers on a single charge.
“The agreement marks another step toward establishing a solid and resilient supply chain that keeps our products competitive in key strategic markets,” said Lee Kang-yeol, LG Energy Solution’s procurement center leader.
“By bringing both battery production and sourcing to the United States, we will deliver competitive and sustainable products to our customers, driving the global energy storage and EV markets.”
Smackover Lithium, a joint venture of U.S. lithium developer Standard Lithium and Norwegian state-owned energy company Equinor, plans to produce lithium carbonate at its South West Arkansas Project using direct lithium extraction technology. The process extracts lithium from underground brine while reducing the environmental footprint of conventional extraction methods.
Lithium carbonate is a key raw material for lithium iron phosphate (LFP) and nickel-cobalt-manganese batteries. Demand is expected to rise as battery makers expand LFP production, particularly for ESS.
LG Energy Solution said the agreement will help it secure a stable supply of U.S.-produced lithium while strengthening its competitiveness in the North American battery market. It currently has eight production facilities in North America, either in operation or under development.
The company also expects the local sourcing arrangement to help it meet critical-mineral sourcing requirements under the U.S. Inflation Reduction Act.
LG Energy Solution has also secured lithium supplies through partnerships with major producers in other resource-rich countries.
It has signed long-term agreements with Chilean lithium producer SQM for 100,000 tons of lithium hydroxide and lithium carbonate, and with Australia's Liontown for 1.75 million tons of lithium concentrate.
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