LG Energy Solution Signs 10-Year Lithium Supply Deal with Smackover Lithium

On September 1, LG Energy Solution announced a ten-year off-take agreement with Smackover Lithium for the supply of battery-grade lithium carbonate, under which it will procure 8,000 metric tons annually, totaling 80,000 metric tons over the contract period. The lithium carbonate will come from a project in southwestern Arkansas, USA, jointly developed by Standard Lithium and Equinor, which plans to use direct lithium extraction (DLE) technology from subsurface brine rather than conventional evaporation pond methods. LG Energy Solution operates seven manufacturing facilities in the United States, most of which are capable of producing lithium iron phosphate (LFP) batteries—lithium being a critical raw material for LFP cathodes. The agreement secures future supply rather than existing production capacity.