LG Energy Solution has committed to a decade-long supply arrangement with Smackover Lithium, a venture jointly owned by Standard Lithium and Equinor, for battery-grade lithium carbonate manufactured within the United States. The deal stipulates annual deliveries of 8,000 metric tons, sourced from the South West Arkansas Project located in Arkansas.
The move reflects LG Energy Solution's strategy to increase its reliance on domestically sourced cathode materials. The company operates seven manufacturing plants across the United States, most of which already possess the capacity to produce lithium iron phosphate (LFP) batteries. Demand for stationary energy storage systems in North America has emerged as a key driver behind the agreement.
Direct Lithium Extraction to Support Supply Chain
Smackover Lithium intends to employ direct lithium extraction technology followed by a purification stage to generate the lithium carbonate. The companies backing the venture maintain that the DLE methodology represents a more environmentally responsible approach to raw material procurement.
Source: Battery-News
