KB News Desk
LG Energy Solution said Tuesday it had signed a long-term supply agreement with US-based Smackover Lithium to secure lithium carbonate, strengthening its local battery material supply chain for the North American energy storage market.
Beginning in 2029, LG Energy Solution will receive 8,000 metric tons of lithium carbonate annually for 10 years. The total 80,000-ton supply will provide enough cathode materials to manufacture batteries for approximately 1.8 million high-performance EVs capable of driving over 500 kilometers on a single charge.
Smackover Lithium — a joint venture between Canadian developer Standard Lithium and Norwegian energy firm Equinor — will supply the material from its Southwest Arkansas Project using low-carbon direct lithium extraction technology. The low-emission process complies with US Inflation Reduction Act rules and strict restrictions on Foreign Entities of Concern, effectively bypassing reliance on Chinese suppliers.
The agreement addresses the rapid growth of the North American ESS market, primarily driven by surging electricity demand, which has made localizing production of cathode materials used in lithium iron phosphate batteries a top priority.
With eight production facilities currently operational or under construction in North America, LG Energy Solution is reinforcing its closed-loop local supply chain — spanning raw material sourcing to battery cell manufacturing.
Lee Kang-yeol, executive vice president and head of procurement at LG Energy Solution, stated, “This partnership with Smackover Lithium is a key milestone that enhances the stability of our critical mineral supply chain in strategic North American markets. By integrating local US production with domestic raw material sourcing, we will continue to boost product competitiveness and sustainability.”
LG Energy Solution continues to aggressively expand its global battery material network, building on previous deals including a 100,000-ton lithium supply contract with Chile’s SQM and a 1.75 million-ton lithium concentrate agreement with Australia’s Liontown.
