- LG Energy Solution to source 8,000 metric tonnes of battery-quality lithium carbonate annually over a 10-year period
- With the U.S.-produced lithium carbonate, the company to secure a fully integrated local supply chain from sourcing to production
- Direct lithium extraction (DLE) process to be applied, ensuring more sustainable sourcing of key battery material
SEOUL, South Korea, Aug. 31, 2026 /PRNewswire/ -- LG Energy Solution (KRX: 373220) today announced it has signed a multi-year binding offtake agreement with Smackover Lithium for battery-quality lithium carbonate.
Under the contract, Smackover Lithium, a partnership between Standard Lithium Ltd. and Equinor, an international energy company, will supply LG Energy Solution with 8,000 metric tonnes of lithium carbonate annually over a 10-year period.
As rising power demand drives growth of the energy storage systems (ESS) market in North America, it has become ever more critical for battery manufacturers to secure a stable supply of locally produced cathode materials for their ESS LFP[1] batteries.
Through the contract, LG Energy Solution will secure lithium carbonate produced from the South West Arkansas (SWA) Project located in Arkansas, thereby obtaining a key cathode material that meets non-PFE[2] requirements. The company operates seven production facilities in the U.S., including three standalone sites, and most of them already have established production capacity for batteries utilizing LFP chemistry. By combining its strong U.S. manufacturing footprint with Smackover Lithium's lithium carbonate, the company now has secured a fully integrated local supply chain from sourcing to production.
Smackover Lithium's lithium carbonate will also be produced using a direct lithium extraction (DLE) and purification process, thereby ensuring a more sustainable supply of materials.
"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 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," said Kang Yeol Lee, Procurement Center Leader of LG Energy Solution. "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."
As a leading global manufacturer of lithium-ion batteries, LG Energy Solution has been at the forefront in securing key raw materials for battery production through strategic partnerships with major global suppliers. The company is also committed to diversifying its supply chain by region to deliver cost-competitive power solutions that are resilient to shifting regulatory environments.
[1] LFP: lithium, iron, phosphate [2] non-PFE: non-Prohibited Foreign Entity |
About LG Energy Solution
LG Energy Solution (KRX: 373220) is a leading global manufacturer of lithium-ion batteries for electric vehicles, mobility, IT, and energy storage systems. With more than 30 years of experience in revolutionary battery technology and extensive research and development (R&D), the company is the top battery-related patent holder in the world with over 100,000 patents. Its robust global network, which spans North America, Europe, and Asia, includes battery manufacturing facilities established through joint ventures with major automakers. Committed to building sustainable battery ecosystem, LG Energy Solution aims to achieve carbon neutrality across its value chain by 2050, while embodying the value of shared growth and promoting diverse and inclusive corporate culture. To learn more about LG Energy Solution's ideas and innovations, visit https://news.lgensol.com.
SOURCE LG Energy Solution
