LG Energy Solution is strengthening its core mineral supply chain in North America by partnering with a U.S. lithium development company.
On September 1, LG Energy Solution announced it has signed a long-term supply agreement for lithium carbonate with Smackover Lithium. Smackover Lithium is a joint venture established by the U.S. lithium developer Standard Lithium and Norway's state-owned energy company Equinor.
Under this agreement, LG Energy Solution will receive a total of 80,000 tons of lithium carbonate over a decade, starting from 2029 when Smackover Lithium begins full-scale production. This amount is sufficient to produce approximately 1.8 million high-performance electric vehicles capable of traveling over 500 kilometers on a single charge.
Smackover Lithium plans to use direct lithium extraction (DLE) technology at its 'Southwest Arkansas Project' to produce high-quality lithium carbonate in an environmentally friendly manner, minimizing carbon emissions.
This contract comes as the energy storage system (ESS) market is rapidly growing due to increased power demand in North America, making the establishment of a local supply chain for key battery materials, such as LFP, a critical task. The agreement aims to proactively address the surging demand for lithium carbonate.
Lithium carbonate is primarily used as a key raw material for LFP and nickel-rich batteries, making it essential for the electric vehicle and energy transition markets.
David Park, CEO of Standard Lithium, stated, "We are very pleased to enter into this agreement with LG Energy Solution, a global battery manufacturer. By supplying U.S.-sourced lithium carbonate sustainably and long-term, we expect to build a strong partnership that fosters growth for both companies."
Lee Kang-yeol, Executive Vice President and Head of the Purchasing Center at LG Energy Solution, remarked, "This partnership with Smackover Lithium is a significant achievement in enhancing supply chain stability by securing environmentally produced key minerals in the North American strategic market. We will provide more competitive and sustainable products through local production and raw material sourcing in the U.S."
Meanwhile, LG Energy Solution is working to expand its production base in North America, recently holding a ceremony to mark the full operation of its Lansing plant in Michigan.
* This article has been translated by AI.
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