SEOUL, September 1 (AJP) - LG Energy Solution (LGES) has signed a long-term supply contract with a U.S. lithium developer, it said on Tuesday.
Under the contract with Smackover Lithium, a joint venture formed by U.S. lithium developer Standard Lithium and Norwegian state owned energy company Equinor, LGES will receive a total of 80,000 tons of lithium carbonate over 10 years starting in 2029, when Smackover Lithium begins full-scale production.
The amount is enough to make batteries for about 1.8 million high performance electric vehicles capable of traveling more than 500 kilometers on a single charge.
Smackover Lithium plans to produce high-quality lithium carbonate in an eco-friendly way by applying direct lithium extraction (DLE) technology to its project in Arkansas to minimize carbon emissions.
LGES said the contract will help secure a stable supply of lithium carbonate as demand for the material grows with the rapid expansion of the energy storage system market in North America. The company also said securing local supply chains for key battery cathode materials, including LFP, has become increasingly important.
LGES said the contract will help it secure a stable supply of lithium carbonate as demand for the material grows rapidly with the expansion of the energy storage system market in North America. The company said securing local supply chains for key battery cathode materials including lithium iron phosphate (LFP) has become a major task.
Lithium carbonate is a key raw material used mainly in LFP and nickel cobalt manganese (NCM) batteries. Along with lithium hydroxide, which is primarily used in high-performance, high-nickel NCM batteries, it is considered a critical mineral for electric vehicles and broader energy transition markets.
"We are excited to be entering into this agreement with [LGES], 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."
"The partnership will help strengthen our supply chain by securing critical minerals from North America," said Lee Kang-yeol, an LG Energy Solution executive. "We will continue to offer more competitive products by producing batteries and sourcing raw materials locally in the U.S."
LGES has been expanding its manufacturing capacity in North America including at its plant in Lansing, Michigan, which began production in August.
AJP Takeaways
• LG Energy Solution signed a 10 year lithium carbonate supply contract with Smackover Lithium, securing 80,000 tons of the key battery material starting in 2029.
• The lithium carbonate supply will be enough to make batteries for about 1.8 million high performance electric vehicles capable of traveling more than 500 kilometers on a single charge.
• The deal will help LG Energy Solution strengthen its North American supply chain as demand for lithium carbonate and energy storage systems grows, while supporting local raw material sourcing in the U.S.
Under the contract with Smackover Lithium, a joint venture formed by U.S. lithium developer Standard Lithium and Norwegian state owned energy company Equinor, LGES will receive a total of 80,000 tons of lithium carbonate over 10 years starting in 2029, when Smackover Lithium begins full-scale production.
The amount is enough to make batteries for about 1.8 million high performance electric vehicles capable of traveling more than 500 kilometers on a single charge.
Smackover Lithium plans to produce high-quality lithium carbonate in an eco-friendly way by applying direct lithium extraction (DLE) technology to its project in Arkansas to minimize carbon emissions.
LGES said the contract will help secure a stable supply of lithium carbonate as demand for the material grows with the rapid expansion of the energy storage system market in North America. The company also said securing local supply chains for key battery cathode materials, including LFP, has become increasingly important.
LGES said the contract will help it secure a stable supply of lithium carbonate as demand for the material grows rapidly with the expansion of the energy storage system market in North America. The company said securing local supply chains for key battery cathode materials including lithium iron phosphate (LFP) has become a major task.
Lithium carbonate is a key raw material used mainly in LFP and nickel cobalt manganese (NCM) batteries. Along with lithium hydroxide, which is primarily used in high-performance, high-nickel NCM batteries, it is considered a critical mineral for electric vehicles and broader energy transition markets.
"We are excited to be entering into this agreement with [LGES], 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."
"The partnership will help strengthen our supply chain by securing critical minerals from North America," said Lee Kang-yeol, an LG Energy Solution executive. "We will continue to offer more competitive products by producing batteries and sourcing raw materials locally in the U.S."
LGES has been expanding its manufacturing capacity in North America including at its plant in Lansing, Michigan, which began production in August.
AJP Takeaways
• LG Energy Solution signed a 10 year lithium carbonate supply contract with Smackover Lithium, securing 80,000 tons of the key battery material starting in 2029.
• The lithium carbonate supply will be enough to make batteries for about 1.8 million high performance electric vehicles capable of traveling more than 500 kilometers on a single charge.
• The deal will help LG Energy Solution strengthen its North American supply chain as demand for lithium carbonate and energy storage systems grows, while supporting local raw material sourcing in the U.S.
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