LG Energy Solution has signed a long-term offtake agreement for lithium carbonate produced in the United States. The supplier is Smackover Lithium, a joint venture between Standard Lithium and Equinor. The agreement covers 8,000 metric tons of battery-grade lithium carbonate annually over a ten-year period.
The material is expected to come from the South West Arkansas Project in Arkansas. With the agreement, LG Energy Solution aims to source a larger share of this key cathode material within the United States.
One factor behind the agreement is the growing North American market for stationary energy storage systems. LG Energy Solution requires raw materials for batteries using lithium iron phosphate (LFP) chemistry. The company operates seven manufacturing facilities in the United States. According to the company, most already have production capacity for LFP batteries.
Direct Lithium Extraction to Support Supply Chain
Smackover Lithium plans to produce the lithium carbonate using direct lithium extraction followed by purification. According to the companies involved, the DLE process is intended to provide a more sustainable method of sourcing the raw material.
Source:
https://news.lgensol.com/company-news/press-releases/5189/
