Smackover Lithium signs supply deal with LG Energy Solution
Smackover Lithium, a joint venture between Standard Lithium (55%) and Norway's Equinor (45%), said on Monday it has signed its second commercial offtake agreement for its South West Arkansas (SWA) project with LG Energy Solution.
US-listed shares of Standard Lithium were up 2%.
Under the terms of the deal, the SWA project will supply LG Energy Solution with 8 000 tons of battery-quality lithium carbonate over a 10-year period after commercial production begins.
Smackover Lithium had signed a similar offtake agreement with commodities trader Trafigura in March.
Together, the agreements mean roughly 90% of the project’s targeted offtake volume has now been committed, the company said.
The partnership is targeting a final investment decision this year.
The construction is planned to begin after FID, with first commercial production targeted for 2029.