Smackover Lithium has signed a binding offtake agreement with LG Energy Solution for lithium carbonate from its South West Arkansas Project.
Under the ten-year take-or-pay agreement, the project will supply LG Energy Solution with 8,000 metric tonnes per year of battery-quality lithium carbonate following the start of commercial production.
LG Energy Solution manufactures lithium-ion batteries for electric vehicles (EVs), energy storage systems, and other applications.
The South West Arkansas Project has an initial planned production capacity of 22,500 metric tonnes of lithium carbonate per year. Smackover Lithium is seeking customer agreements covering approximately 80% of that capacity.
Combined with a previously announced agreement to supply Trafigura with 8,000 metric tonnes per year for 10 years, approximately 90% of the project’s targeted offtake volume has now been committed. Smackover Lithium said it is in discussions with additional prospective customers and expects to sign one smaller agreement to complete the offtake process.
The agreements are also supporting financing efforts for the project. Smackover Lithium previously reported indications of interest for more than $1 billion in project debt from three export credit agencies, with due diligence currently underway.
A final investment decision is targeted for 2026. Construction is expected to begin following the decision, with first commercial production of battery-quality lithium carbonate planned for 2029. Pricing and other commercial terms were not disclosed.
Smackover Lithium is a partnership between Standard Lithium and Equinor.
Filed Under: Batteries, Technology News