LG Energy Solution Secures 10-Year Lithium Supply from Smackover Lithium
LG Energy Solution has secured an agreement to purchase 8,000 tons of lithium carbonate annually from Smackover Lithium for a decade. This deal, starting in 2029, aims to enhance LG's domestic supply chain for lithium and support U.S. energy independence in critical minerals.
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LG Energy Solution Ltd. has finalized a 10-year contract with Smackover Lithium to acquire 8,000 metric tonnes of battery-grade lithium carbonate annually, beginning in 2029. This supply will be sourced from the South West Arkansas project and is expected to comply with U.S. foreign entity of concern requirements.
The agreement supports the establishment of a domestic supply chain for lithium, crucial as demand for energy storage systems rises. Smackover Lithium, a joint venture between Standard Lithium Ltd. and Equinor, has also recently secured a similar agreement with Trafigura. This move by LG reflects a strategic effort to reduce dependency on foreign suppliers and adapt to evolving regulatory landscapes.
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