[Edaily Reporter SOYEON KIM ] LG Energy Solution has signed a long-term lithium carbonate supply agreement with a U.S.-based lithium development company, marking a step toward strengthening its local critical mineral supply chain in North America. LG Energy Solution has now established a fully integrated supply chain system in the U.S., spanning from raw material procurement to battery production.

LG Energy Solution announced on the 1st that it had signed a long-term lithium carbonate supply agreement with U.S.-based Smackover Lithium. SMEC CO.,LTD is a joint venture established by Standard Lithium, a U.S. lithium development company, and Equinor, a Norwegian state-owned energy company. The contract is reportedly valued at $1.5 billion (approximately 2.0534 trillion won).

Through this agreement, LG Energy Solution is set to receive a total of 80,000 metric tons of lithium carbonate over a 10-year period starting in 2029, when SMEC CO.,LTD begins full-scale production. This volume is sufficient to produce approximately 1.8 million high-performance electric vehicles capable of traveling over 500 km on a single charge.

SMEC CO.,LTD plans to produce high-quality lithium carbonate using an eco-friendly method that minimizes carbon emissions by applying Direct Lithium Extraction (DLE) technology to the “Southwest Arkansas Project” currently underway in Arkansas.

With the energy storage system (ESS) market experiencing rapid growth due to rising electricity demand in North America, securing local supply chains for key battery cathode materials—such as lithium iron phosphate (LFP)—has emerged as a critical challenge. Consequently, LG Energy Solution pursued a long-term supply agreement to proactively address the surging demand for lithium carbonate.

In particular, lithium carbonate is primarily used as a key raw material for LFP and ternary batteries. Along with lithium hydroxide—which is mainly used in high-performance ternary (high-nickel) batteries—it is considered a key mineral driving the electric vehicle and energy transition markets.

By securing a stable local supply chain in the U.S. through eco-friendly processes based on DLE technology, LG Energy Solution is expected to meet the eligibility requirements for benefits under the Inflation Reduction Act (IRA) and simultaneously strengthen its supply chain competitiveness and ESG (Environmental, Social, and Governance) competitiveness in the North American market.

Meanwhile, LG Energy Solution currently operates eight production facilities across North America. Through this agreement, the company has established a comprehensive supply chain system that spans from local raw material procurement to battery production.

David Park, CEO of Standard Lithium, stated, “It is very meaningful to sign this agreement with LG Energy Solution, a world-class battery manufacturer,” adding, “By supplying U.S.-sourced lithium carbonate to LG Energy Solution on a long-term and sustainable basis, we expect to build a solid partnership where both companies grow together.”

Lee Kang-yeol, Executive Vice President and Head of the Procurement Center at LG Energy Solution, remarked, “This partnership with Smackover Lithium is a meaningful achievement that enhances supply chain stability by securing key minerals produced in an environmentally friendly manner in the strategic North American market.”

LG Energy Solution has been actively expanding strategic partnerships with leading companies in major mineral-producing countries around the world to build a stable raw material supply chain. Previously, the company signed a long-term supply contract for 100,000 metric tons of lithium hydroxide and carbonate with Chile’s SQM, the world’s largest lithium producer, and has continued to pursue multifaceted raw material collaborations with major lithium companies, including a supply agreement for 1.75 million metric tons of lithium concentrate with Australia’s Liontown.