LG Energy Solution Secures 10-Year US Lithium Supply Deal
LG Energy Solution Secures 10-Year US Lithium Supply Deal

LG Energy Solution Secures 10-Year US Lithium Supply Deal

By Mintesinot Nigussie  |  September 1, 2026

LG Energy Solution has agreed to buy battery-grade lithium carbonate from Smackover Lithium for 10 years, strengthening the South Korean battery maker’s US supply chain as demand for energy-storage systems grows in North America.

Under the binding agreement, Smackover Lithium will supply 8,000 tonnes of lithium carbonate annually, or 80,000 tonnes over the full contract period. Smackover Lithium is a partnership between Standard Lithium and Norway’s Equinor.

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The lithium will come from the South West Arkansas Project in the US and will be produced using direct lithium extraction and purification technology, according to the companies.

The agreement will give LG Energy Solution access to locally produced lithium that meets non-PFE requirements for its lithium iron phosphate batteries used in energy-storage systems.

LG Energy Solution operates seven manufacturing facilities in the US, including three standalone plants, with several already producing batteries using LFP chemistry. The new supply agreement links domestic raw-material sourcing with the company’s US battery manufacturing operations.

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The deal comes as rising electricity demand drives investment in energy-storage systems across North America, increasing pressure on battery manufacturers to secure reliable supplies of locally sourced critical minerals.

David Park, chief executive of Standard Lithium, said the agreement could form the basis for a longer-term partnership to supply US-produced lithium carbonate to LG Energy Solution.

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Kang Yeol Lee, procurement centre leader at LG Energy Solution, said the agreement would strengthen the company’s supply chain and support competitive products for the energy-storage and electric-vehicle markets.

LG Energy Solution has been expanding partnerships with raw-material suppliers as it seeks to diversify its battery supply chain by region and reduce exposure to changes in trade and regulatory conditions.

Source: FSX Business News