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Smackover Lithium inks 10-year supply deal for 8,000 tonnes annually
LG Energy Solution will receive battery-grade lithium carbonate produced at its South West Arkansas project for the full 10-year term, supporting a more integrated US supply chain.
LG Energy Solution has signed a 10-year lithium supply deal with Smackover Lithium to support the battery maker’s domestic US sourcing plans. Under the agreement, Smackover Lithium will supply 8,000 metric tonnes of battery-grade lithium carbonate annually for a decade, produced at the South West Arkansas (SWA) project.
The material is expected to meet US foreign entity of concern requirements, giving LG a more locally integrated supply chain from sourcing to production. Mining.com reports the company said the arrangement helps keep its products competitive in strategic markets as it builds out capacity in the US.
Mining.com also notes the contract aligns with a broader push to expand US critical minerals production and reduce reliance on foreign suppliers. It is the second offtake agreement Smackover Lithium has secured this year, following a March pact with commodities trader Trafigura for 8,000 tonnes a year over ten years.
For LG, the deal is part of its effort to diversify lithium sourcing to deliver cost-competitive battery and energy storage products that can adjust to changing regulatory environments, Mining.com reports. The Arkansas-based producer will provide the 8,000 metric tonnes of battery-grade lithium for the full term.