South Korean lithium-ion battery manufacturer LG Energy Solution Ltd. has entered into an agreement with Smackover Lithium for the supply of raw materials. This is reported in a press release from LG.
Under the agreement, LG will receive 8,000 tons of battery-grade lithium carbonate per year for ten years, starting in 2029. Lithium carbonate is a key component of lithium iron phosphate batteries, which are a cheaper alternative to nickel batteries.
In March, Smackover Lithium entered into a similar agreement with Singapore-based Trafigura. Deals with LG and Trafigura provide 90% of the annual supply volume.
Most of the lithium used in the United States is mined in Chile and Argentina and processed in China. In 2025, Smackover Lithium received $225 million from the U.S. government for the first phase of a lithium carbonate production project in Arkansas, which is scheduled to be operational by 2029.
LG Energy Solution Ltd. is a lithium—ion battery manufacturing company headquartered in Seoul, South Korea. LG is striving to expand beyond the traditional lithium battery market and strengthen its position in the field of artificial intelligence and defense technologies.
Smackover is a joint venture between the Norwegian oil company Equinor ASA and the Canadian Standard Lithium Ltd. for lithium production in the states of Texas and Arkansas (USA).
