Smackover Lithium recently secured a deal with LG Energy Solution, the company’s second major contract for its South West Arkansas Project.

Smackover Lithium will supply LG with 8,000 metric tons of battery-quality lithium carbonate yearly for 10 years once production begins. LG builds batteries for electric vehicles and energy storage.

A generic image of a lithium extraction site; Photo: Aerial Viewer/Shutterstock

“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,” David Park, Chief Executive Officer of Standard Lithium, explained.

“The Agreement further anchors our customer offtake portfolio, complementing the contract with Trafigura we announced in March of this year, and is another major milestone in the development of the SWA Project,” Park added. “We have now secured a vast majority of the offtake agreements needed to move forward with our Project financing plans and a Final Investment Decision. 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 U.S.-based and sustainably produced battery-quality lithium carbonate.”

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Advancing the Lithium Project

This agreement helps advance the Arkansas site’s goal of producing 22,500 metric tons of lithium carbonate each year. Between this LG deal and a similar contract with Trafigura, the company has locked in about 90% of its target sales goal.

Having buyers lined up helps Smackover Lithium secure additional funding, on top of its over $1 billion in financing from three major Export Credit Agencies.

“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,” Kang Yeol Lee, Procurement Center Leader of LG Energy Solution, added. “By bringing both battery production and sourcing to the U.S., we will deliver competitive and sustainable products to our customers, driving the global energy storage and EV markets.”

If the company stays on track, it will make a final investment decision this year. Construction will start shortly after, with commercial production kicking off in 2029.