LG Energy Signs $1.5 Billion Lithium Carbonate Deal with Smackover Lithium in Arkansas
LG Energy Solution has entered a $1.5 billion offtake agreement for lithium carbonate with Smackover Lithium in Arkansas. This deal is significant as it secures 90% of the project's targeted offtake volume, essential for financing and advancing production plans in the U.S. lithium market.
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LG Energy Solution has signed a binding take-or-pay offtake agreement with Smackover Lithium for 8,000 metric tons of battery-quality lithium carbonate annually, valued at $1.5 billion over ten years. This agreement, combined with a prior contract with Trafigura, commits approximately 90% of the South West Arkansas Project's 22,500 metric tons annual capacity.
Smackover Lithium, a partnership of Standard Lithium and Equinor, is in advanced discussions to finalize one more smaller offtake agreement. The project aims for a final investment decision in 2026, with construction expected to start soon after, targeting commercial production by 2029. This development positions Arkansas as a key player in the U.S. lithium supply chain, potentially reducing reliance on foreign sources.
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