LG Energy Solution Secures U.S. Lithium Supply in 10-Year Deal

On August 31, LG Energy Solution announced a multi-year binding offtake agreement with Smackover Lithium to secure battery-quality lithium carbonate and strengthen an integrated U.S. supply chain from sourcing through production. Under the agreement, Smackover Lithium will supply 8,000 metric tonnes of lithium carbonate annually for 10 years. The arrangement is designed to provide a more secure domestic source of a critical battery material while supporting LG Energy Solution’s broader battery manufacturing operations in the United States. The agreement also aligns sourcing with the company’s efforts to serve customers in global energy storage and electric vehicle markets.

Smackover Lithium, a partnership between Standard Lithium Ltd and Equinor, will supply the lithium carbonate under the long-term contract. The material will come from the South West Arkansas (SWA) Project in Arkansas, giving LG Energy Solution access to domestically produced lithium carbonate. The supply arrangement is intended to support cathode material that meets non-Prohibited Foreign Entity requirements, an important consideration for battery manufacturing and sourcing strategies in the U.S. market. The 10-year duration also provides greater visibility into the availability of lithium feedstock needed for sustained battery production.

The agreement supports LG Energy Solution’s established manufacturing presence in the United States, where the company operates seven production facilities, including three standalone sites. These facilities have production capacity for batteries using lithium iron phosphate (LFP) chemistry, increasing the strategic relevance of a reliable lithium carbonate supply. By connecting domestic raw-material sourcing with established battery production, the arrangement is intended to strengthen the company’s ability to develop a more integrated supply chain. It also reduces reliance on material flows that may face geopolitical, regulatory, or sourcing constraints outside the U.S.

Smackover Lithium’s lithium carbonate will be produced through a direct lithium extraction (DLE) and purification process. DLE is intended to extract lithium from resource-rich brines and can provide a more targeted approach to lithium recovery and processing. In this agreement, the technology is part of the supply strategy for producing battery-quality lithium carbonate from the South West Arkansas Project. The inclusion of DLE and purification capabilities adds a sustainability dimension to the sourcing arrangement while supporting the objective of developing a domestic lithium supply chain connected directly to battery manufacturing requirements.

The long-term agreement also reflects the growing importance of localized battery-material supply chains as automakers, battery manufacturers, and energy-storage companies seek greater control over critical inputs. Lithium is a key material used in rechargeable batteries, making reliable access increasingly important as electric vehicle and energy-storage demand develops. For LG Energy Solution, securing contracted volumes from a U.S.-based project provides greater supply visibility while complementing its existing manufacturing footprint. The agreement therefore connects raw-material security, domestic production, regulatory considerations, and battery manufacturing within a single sourcing strategy.

Kang Yeol Lee, Procurement Center Leader of LG Energy Solution, said the company aims to combine battery production and sourcing in the United States to deliver competitive and sustainable products for customers in global energy storage and electric vehicle markets. The statement highlights the strategic purpose of the agreement beyond securing lithium volumes alone. By linking domestic material sourcing with battery manufacturing capacity, LG Energy Solution is positioning the arrangement as part of a broader effort to build a competitive and sustainable U.S. battery ecosystem. The 10-year supply commitment provides a long-term foundation for that strategy.

Frequently Asked Questions

What does the LG Energy Solution agreement with Smackover Lithium provide?
The agreement provides LG Energy Solution with a long-term supply of battery-quality lithium carbonate from the South West Arkansas Project in the United States. Smackover Lithium will supply 8,000 metric tonnes annually for 10 years under the binding offtake agreement. The arrangement is designed to strengthen an integrated domestic supply chain connecting lithium sourcing with battery production. It also supports access to cathode material meeting non-Prohibited Foreign Entity requirements and complements LG Energy Solution’s U.S. manufacturing operations, including facilities producing batteries based on LFP chemistry.