LG Energy Solution Inks Ten-Year Lithium Deal with Arkansas Supplier

LG Energy Solution is taking steps to secure its North American supply chain. The battery giant has signed a long-term offtake agreement with Smackover Lithium, a US-based company. This partnership is part of LG’s broader strategy to support its expanding battery production in the United States.

Under the agreement, the South Korean manufacturer will purchase 8,000 metric tons of lithium carbonate each year starting in 2029. The lithium will be sourced from Smackover’s operations in Arkansas. The supply will be used in the production of batteries for both electric vehicles and stationary energy storage systems, helping LG meet the increasing demand for advanced battery technology.

This deal represents a significant move towards localizing critical mineral sourcing in the US, reducing the company’s exposure to potential global supply chain disruptions. By locking in a domestic source for a key raw material, LG Energy Solution is strengthening its position in the rapidly growing North American battery market.