LG Energy Solution has secured a 10-year binding agreement with Smackover Lithium to purchase 8,000 metric tonnes of battery-grade lithium carbonate annually. The material will be sourced from the South West Arkansas Project, utilizing direct lithium extraction and purification methods to meet non-Prohibited Foreign Entity requirements.
This contract is the second of its kind for the project, following a similar 10-year deal with Trafigura. Together, these agreements cover approximately 90% of the 80% target for the initial phase of the project, which has a total nameplate capacity of 22,500 metric tonnes per year.
Smackover Lithium, a joint venture between Standard Lithium and Equinor, is currently coordinating offtake agreements with project financing. As of December 2025, the company reported interest for over $1 billion in debt from three export credit agencies.
The partnership plans to reach a final investment decision in 2026, with the first commercial production expected in 2029. LG Energy Solution intends to integrate this supply into its US manufacturing network, which includes seven facilities, most of which are equipped for LFP cell production.
