LG Energy Solution Signs 10-Year Arkansas Lithium Deal Starting 2029
LG Energy Solution has signed a binding 10-year take-or-pay agreement for 8,000 tonnes a year of battery-grade lithium carbonate from Smackover Lithium in Arkansas, beginning in 2029. This joint venture, 45% owned by Norway’s state-controlled Equinor, extracts the lithium from brine two miles beneath Arkansas.
Smackover Lithium will supply LG with this lithium, which is part of a larger strategy to secure critical raw materials for batteries. This deal follows a similar agreement LG signed with Vulcan Energy in Germany in January 2022, set to begin delivering in 2025.
Equinor, though not a mining company, owns a significant stake in Standard Lithium, one of the projects providing lithium to LG. The EU, according to the Commission’s own raw materials factsheet, currently accounts for less than 0.1% of global lithium mine production and is 100% dependent on imports at the processing stage.
This agreement, along with others like Vulcan Energy’s Lionheart project, underscores the urgency in Europe to develop its own lithium industry to meet its battery ambitions.
Key Takeaways:
- LG locks in a significant portion of its lithium needs through 2039.
- The deal highlights the growing competition for global lithium resources.
- Europe is working to reduce its reliance on imported lithium, with recycling playing a crucial role.