LG Energy Solution announced on the 1st that it has signed a long-term agreement with Smackover Lithium in the United States to supply a total of 80,000 tons of lithium carbonate over 10 years.

Smackover Lithium is a joint venture established by U.S. lithium developer Standard Lithium and Norwegian state-owned energy company Equinor.

The specific contract value was not disclosed. However, industry observers estimate the size of the deal at around USD 1.5 billion (approximately KRW 2,061 billion).

LG Energy Solution is scheduled to receive a total of 80,000 tons of lithium carbonate over 10 years starting in 2029, when Smackover Lithium begins mass production. The company explained that this volume is sufficient to produce approximately 1.8 million electric vehicles capable of driving more than 500 km on a single charge.

Lithium carbonate is a key raw material used in cathode materials for lithium iron phosphate (LFP) and nickel-based (ternary) batteries. LG Energy Solution plans to secure a lithium supply chain within the United States in response to the expansion of the North American energy storage system (ESS) market and the increase in local battery production.

Smackover Lithium plans to produce lithium carbonate through the “Southwest Arkansas Project” currently under way in Arkansas, United States. The project will employ direct lithium extraction (DLE) technology, which directly separates lithium from brine.

LG Energy Solution is currently building or operating eight production facilities in North America. Through this agreement, the company has expanded its supply chain that sources raw materials in the United States and extends through to battery production.

David Park, Chief Executive Officer (CEO) of Standard Lithium, said, “We will expand the partnership between the two companies by supplying U.S.-produced lithium carbonate to LG Energy Solution on a long-term basis.”

Lee Kang-yeol, Senior Vice President and Head of Procurement Center at LG Energy Solution, said, “This contract enhances supply chain stability by securing core minerals produced locally in the North American market,” adding, “We will continue to expand local production and raw material procurement in the United States.”

Previously, LG Energy Solution signed a long-term supply contract with Chile’s SQM for 100,000 tons of lithium hydroxide and carbonate, and also concluded an agreement with Australia’s Liontown for the supply of 1.75 million tons of lithium concentrate.

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