LG Energy Solution Signs 10-Year Lithium Deal in Arkansas

LG Energy Solution Ltd. signed a ten-year agreement with Smackover Lithium to purchase 8,000 tons of battery-grade lithium carbonate annually beginning in 2029. The material will be extracted from limestone shelves in Arkansas by Smackover Lithium, a joint venture between Equinor ASA and Standard Lithium Ltd.

This contract, combined with a prior agreement with Trafigura, secures approximately 90% of the project's expected annual offtake. LG Energy Solution plans to utilize the lithium to expand its battery production beyond electric vehicles, targeting energy storage for military applications and artificial intelligence data centers.

The project is part of a broader effort to decrease U.S. industrial dependence on foreign supply chains, particularly those in China, Argentina, and Chile. Governor Sarah Huckabee Sanders noted that some of the largest companies in the world are viewing Arkansas as a hub where lithium is becoming the next big thing.