Under the contract, Smackover Lithium, a partnership between Standard Lithium Ltd and international energy company Equinor, 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 LFP1 batteries.
Through the contract, LG Energy Solution will secure lithium carbonate produced from the Southwest Arkansas (SWA) Project located in Arkansas, thereby obtaining a key cathode material that meets non-PFE2 requirements. The company operates seven production facilities in the US, including three standalone sites, and most of them already have established production capacity for batteries utilising LFP chemistry. By combining its strong US 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 US-based and sustainably produced battery-quality lithium carbonate.”
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.
“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” added Kang Yeol Lee, Procurement Centre Leader of LG Energy Solution. “By bringing both battery production and sourcing to the US, we will deliver competitive and sustainable products to our customers driving the global energy storage and EV markets.”
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