LG Energy Solution is locking down a long-term US supply of battery-grade lithium as it moves to strengthen its domestic production chain for energy storage and electric vehicle batteries.

 

The South Korean battery giant said Monday it has signed a binding, multi-year offtake agreement with Smackover Lithium to receive 8,000 metric tonnes of lithium carbonate annually for 10 years.

 

Smackover Lithium — a partnership between Standard Lithium Ltd. and Equinor — will supply the material from its South West Arkansas (SWA) Project in Arkansas.

 

The deal gives LG Energy Solution access to US-produced lithium carbonate that meets non-Prohibited Foreign Entity (non-PFE) requirements, while helping the company build a supply chain that runs from raw-material sourcing through battery production on US soil.

 

“We are excited to be entering into this agreement with LG Energy Solution, one of the world’s leading battery producers with a diverse and global customer base and a presence in many dynamic and growing industry segments,” said David Park, CEO of Standard Lithium. 

 

“We expect this to be the beginning of a long and mutually beneficial partnership whereby we will provide LG Energy Solution with a long-term supply of US-based and sustainably produced battery-quality lithium carbonate.”

 

The agreement comes as electricity demand drives rapid growth in North America’s energy storage systems (ESS) market, increasing pressure on battery makers to secure reliable supplies of locally produced materials for lithium-iron-phosphate (LFP) batteries.

 

LG Energy Solution already operates seven production facilities in the US, including three standalone sites, with most having capacity to produce LFP batteries. The company said combining that manufacturing footprint with Smackover Lithium’s Arkansas-based lithium supply will create a more fully integrated US supply chain.

 

The lithium will be produced using direct lithium extraction (DLE) and purification technology, which LG Energy Solution said will support a more sustainable sourcing model for the key battery material.

 

“We are pleased to begin this partnership with Smackover Lithium and the agreement marks another step toward establishing a solid and resilient supply chain that keeps our products competitive in key strategic markets,” said Kang Yeol Lee, Procurement Center Leader of LG Energy Solution. 

 

“By bringing both battery production and sourcing to the US, we will deliver competitive and sustainable products to our customers driving the global energy storage and EV markets.”

 

The agreement underscores LG Energy Solution’s broader push to secure critical battery materials through strategic partnerships while diversifying its supply chain geographically.