The Arkansas offtake and what it commits
LG Energy Solution has signed a 10-year binding agreement with Smackover Lithium to purchase 8,000 metric tonnes of battery-quality lithium carbonate annually, securing a domestic feedstock for its US battery operations. Smackover Lithium is a partnership between Standard Lithium and Equinor, and the material will be produced at its South West Arkansas (SWA) project. Over the full contract term, the deal represents as much as 80,000 metric tonnes of lithium carbonate. The agreement is intended to support lithium iron phosphate (LFP) battery production tied to the growing North American energy storage market.
How the lithium will be produced
The Arkansas project will use direct lithium extraction (DLE) and purification to generate battery-grade lithium carbonate from lithium-rich brine, rather than the evaporation-pond methods associated with conventional brine operations. According to the partners, the resulting material will meet non-Prohibited Foreign Entity (non-PFE) requirements, a qualification that has become more important as US battery supply policy tightens and as customers and procurement frameworks increasingly require sustainability criteria alongside volume commitments.
What it means for LG Energy Solution's US footprint
LG Energy Solution operates seven US production facilities, including three standalone sites, most of which already have established capacity for LFP chemistry. Combining the Arkansas-sourced lithium carbonate with that manufacturing base is intended to complete a locally integrated supply chain running from extraction through finished cells. In a statement, Kang Yeol Lee, Procurement Center Leader of LG Energy Solution, said: "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."
How the partners framed the partnership
David Park, Chief Executive of Standard Lithium, described the agreement as the start of a long-term partnership providing LG Energy Solution with sustainably produced, US-based lithium carbonate. The contracted volumes will be produced through the SWA project, the foundation of Smackover Lithium's domestic production plan. Reporting on the deal also noted that battery manufacturers are under pressure to secure reliable supplies of critical materials while reducing exposure to overseas supply chains, framing the offtake as part of a broader push toward localizing battery raw materials in North America.
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