Smackover Lithium has made significant progress toward establishing its facility in Southwest Arkansas, signing a ten-year supply agreement with global battery manufacturer LG Energy Solution.
The company announced the deal as another step toward a final investment decision, which, if secured, could allow construction to begin soon on the lithium production plant. Full production is projected to start by 2029.
David Park, CEO of Standard Lithium, Smackover Lithium’s parent company, said the agreement strengthens the company’s plans for the Southwest Arkansas project.
"We are excited to be entering into this agreement with LG Energy Solution, one of the world’s leading battery producers with a diverse and global customer base and a presence in many dynamic and growing industry segments," Park said. "The agreement further anchors our customer offtake portfolio, complementing the contract with Trafigura we announced in March of this year, and is another major milestone in the development of the SWA Project."
Park added that the majority of required offtake agreements have now been secured, positioning Smackover Lithium to move forward with project financing and finalize its investment decision.
If completed, the Southwest Arkansas facility would produce battery-quality lithium carbonate domestically and sustainably, providing critical materials for electric vehicle batteries and other green technologies.
This deal follows another supply agreement earlier this year with commodity trading company Trafigura and highlights growing interest in lithium production within Arkansas. The state is poised to play a larger role in supporting clean energy initiatives as demand for domestic lithium sources continues to rise.