Smackover Lithium inks $1.5 billion supply pact with LG Energy Solution for Arkansas Project
2026-09-01 11:28:11 [Print]
A company advancing a major lithium development in southern Arkansas has secured a landmark $1.5 billion supply agreement with battery manufacturer LG Energy Solution, covering lithium produced from the region's prolific Smackover Formation.
On Monday, August 31, Smackover Lithium announced that it had finalized a binding 10-year offtake agreement with LG Energy Solution to deliver 8,000 metric tons of battery-grade lithium carbonate annually. The supply commitment is slated to commence upon the start of commercial operations at the Southwest Arkansas Project.
Smackover Lithium is a joint venture between Standard Lithium and Equinor, overseeing the project across roughly 30,000 acres of brine leases in Lafayette and Columbia counties. A central processing facility is planned for a site just south of Lewisville.
The initial phase of the project is engineered to yield approximately 22,500 metric tons of battery-quality lithium carbonate per year, sourced from brine extracted from the underground Smackover Formation. Following lithium recovery, the depleted brine will be reinjected back into the subsurface.
The partnership is targeting a final investment decision on the project in 2026. Should the project receive construction approval, commercial lithium production is currently anticipated to begin in 2029.
LG Energy Solution, a South Korea-based battery powerhouse, serves both the electric vehicle and energy storage system markets.
On Monday, August 31, Smackover Lithium announced that it had finalized a binding 10-year offtake agreement with LG Energy Solution to deliver 8,000 metric tons of battery-grade lithium carbonate annually. The supply commitment is slated to commence upon the start of commercial operations at the Southwest Arkansas Project.
Smackover Lithium is a joint venture between Standard Lithium and Equinor, overseeing the project across roughly 30,000 acres of brine leases in Lafayette and Columbia counties. A central processing facility is planned for a site just south of Lewisville.
The initial phase of the project is engineered to yield approximately 22,500 metric tons of battery-quality lithium carbonate per year, sourced from brine extracted from the underground Smackover Formation. Following lithium recovery, the depleted brine will be reinjected back into the subsurface.
The partnership is targeting a final investment decision on the project in 2026. Should the project receive construction approval, commercial lithium production is currently anticipated to begin in 2029.
LG Energy Solution, a South Korea-based battery powerhouse, serves both the electric vehicle and energy storage system markets.
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