LG Energy Solution Locks In 10-Year Supply of U.S. Lithium Carbonate from Smackover Lithium
LG Energy Solution signs a 10-year deal to buy 8,000 metric tonnes of U.S.-produced lithium carbonate per year, securing a local source for its battery plants.
- 8,000 metric tonnes
- 10 years
- 7
- 3
What Happened
LG Energy Solution (KRX: 373220) has signed a multi-year binding offtake agreement with Smackover Lithium, a partnership between Standard Lithium Ltd. and Equinor, to secure battery-quality lithium carbonate. Under the contract, Smackover Lithium will supply 8,000 metric tonnes of the material annually over a 10-year period, sourced from the South West Arkansas (SWA) Project in Arkansas.
The agreement gives LG Energy Solution a key cathode material that meets non-PFE (non-Prohibited Foreign Entity) requirements. The company operates seven production facilities in the U.S., including three standalone sites, and most already have production capacity for batteries using LFP chemistry. This creates a fully integrated local supply chain from sourcing to production.
8,000 metric tonnes
over a 10-year contract for LG Energy Solution
Smackover Lithium will produce the lithium carbonate using a direct lithium extraction (DLE) and purification process, which the companies say ensures a more sustainable supply of the key battery material.
“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. 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.”
“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. 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.”
The deal comes as rising power demand drives growth of the energy storage systems (ESS) market in North America, making it critical for battery manufacturers to secure stable supplies of locally produced cathode materials for ESS LFP batteries. LG Energy Solution says it is committed to diversifying its supply chain by region to deliver cost-competitive power solutions that are resilient to shifting regulatory environments.
Previously from LG Energy Solution
LG Energy Solution recently began production at its $2 billion Lansing, Michigan gigafactory, expanding its U.S. battery manufacturing footprint. In Q2 2026, it reported KRW 7.6 trillion revenue and returned to profitability, driven by strong energy storage system sales. Today's lithium carbonate deal builds on that U.S. strategy by securing a local source for a key battery material.
- LG Energy Solution commences operations at $2 billion Lansing battery gigafactory
- LG Energy Solution Posts KRW 7.6 Trillion Revenue, Turns Profitable in Q2 2026 on Strong ESS Sales
Background drawn from MotorClaw's earlier coverage of LG Energy Solution's official releases.
Why this matters
This deal locks in a 10-year, U.S.-based supply of lithium carbonate, a key ingredient for the LFP batteries LG makes in America. That matters because demand for energy storage systems is rising in North America, and having a local source helps LG avoid supply-chain disruptions and meet non-PFE (non-Prohibited Foreign Entity) requirements. It also supports LG's U.S. battery plants, which serve customers driving the energy storage and EV markets.
Terms in This Story
- offtake agreement
- A contract to buy a specified portion of a producer's future output, often used to secure supply of raw materials.
- LFP
- Lithium iron phosphate, a type of lithium-ion battery chemistry known for safety and long life, commonly used in energy storage and EVs.
- non-PFE
- Non-Prohibited Foreign Entity, a designation indicating that an entity is not on a government list of restricted foreign entities.
- direct lithium extraction (DLE)
- A method of extracting lithium from brine or other sources without large evaporation ponds, generally considered more sustainable and faster than traditional methods.
Summarised from the linked release; details can be imperfect — always verify against the original source.