LG Energy Solution said on Sept. 1 it signed a long-term lithium carbonate supply agreement with U.S. lithium developer Smackover Lithium. Smackover Lithium is a joint venture established by U.S.-based Standard Lithium and Norway’s state-owned energy company Equinor.

LG Energy Solution will receive a total of 80,000 tons of lithium carbonate for 10 years starting in 2029, when Smackover Lithium begins mass production. The volume is enough to produce about 1,800,000 electric vehicles that can drive more than 500 km on a single charge. Smackover Lithium plans to produce lithium carbonate with minimized carbon emissions by applying DLE, a technology that directly extracts lithium, at its Southwest Arkansas Project in the U.S. state of Arkansas.

In North America, rising electricity demand is expanding the market for energy storage systems, creating a task of securing local supply chains for battery cathode materials such as LFP. Lithium carbonate is a key raw material for LFP and ternary batteries, and along with lithium hydroxide used in high-performance ternary batteries, it is considered a key mineral driving the electric vehicle and energy transition markets. LG Energy Solution said it plans to preemptively respond to surging lithium carbonate demand through this contract.

LG Energy Solution has secured lithium carbonate produced in the United States using an environmentally friendly process, meeting requirements to benefit from the U.S. Inflation Reduction Act, while also strengthening supply chain and ESG competitiveness. LG Energy Solution, which currently operates 8 production facilities in North America, has further strengthened its supply chain system linking raw material procurement to battery production.

LG Energy Solution previously signed a long-term supply agreement with Chile’s SQM, the world’s largest lithium producer, for 100,000 tons of lithium hydroxide and lithium carbonate. It also signed an agreement with Australia’s Liontown to supply 1,750,000 tons of lithium concentrate. LG Energy Solution plans to expand partnerships with leading companies in major mineral-producing countries to build a stable raw materials supply chain.

David Park (데이비드 박), CEO of Standard Lithium, said, "It is very meaningful to sign this contract with LG Energy Solution, a global battery manufacturer." He said, "We will supply U.S.-made lithium carbonate over the long term in a sustainable way and build a partnership in which both companies grow together."

Kang-yeol Lee (이강열), head of LG Energy Solution’s procurement center, said, "The partnership with Smackover Lithium is an achievement that advances supply chain stability by securing key minerals produced in an environmentally friendly way in the strategic North American market." He said, "We will provide competitive and sustainable products through local U.S. production and raw material procurement."