LG Secures 80k Ton Lithium Deal to Fuel North America Expansion

LG Energy Solution has secured a major lithium carbonate deal with US-based Smackover Lithium, strengthening its local battery material supply chain for the North American energy storage market. The long-term agreement will see LG Energy Solution receive 8,000 metric tons of lithium carbonate annually from 2029 to 2039, totaling 80,000 tons over a decade.

This supply will provide enough cathode materials to manufacture batteries for approximately 1.8 million high-performance EVs capable of driving over 500 kilometers on a single charge. Smackover Lithium's low-carbon direct lithium extraction technology complies with US Inflation Reduction Act rules and strict restrictions on Foreign Entities of Concern, effectively bypassing reliance on Chinese suppliers.

LG Energy Solution currently operates eight production facilities in North America, which are operational or under construction. The company is reinforcing its closed-loop local supply chain by integrating domestic raw material sourcing with local US production.

'This partnership with Smackover Lithium is a key milestone that enhances the stability of our critical mineral supply chain in strategic North American markets,' said Lee Kang-yeol, executive vice president and head of procurement at LG Energy Solution. 'By integrating local US production with domestic raw material sourcing, we will continue to boost product competitiveness and sustainability.'