Standard Lithium and LG Energy Solution Sign Binding Lithium Offtake Agreement

Key Facts

In a move reflecting the strategic push for resilient battery supply chains, Smackover Lithium, a partnership involving Standard Lithium Ltd., has signed a binding offtake agreement with LG Energy Solution. Under the terms of this binding take-or-pay agreement, the South West Arkansas Project will supply LG Energy Solution with 8,000 metric tonnes per year of battery-quality lithium carbonate. The partnership is set for a 10-year duration following the commencement of commercial production.

This agreement marks a significant milestone in securing the project's commercial output, as Smackover Lithium aims to commit approximately 80% of its 22,500 metric tonne annual nameplate capacity to offtake contracts. Combined with a previous agreement with Trafigura, roughly 90% of the targeted offtake volume is now committed. Per market data and corporate reports, partnering with a global leader like LG Energy Solution validates the project's scale and ensures long-term revenue stability.

Standard Lithium maintains operatorship and a 55% interest in the project, with Equinor holding the remaining 45%. Market participants are also weighing manufacturing health, noting that U.S. Durable Goods Orders recently showed a 1.1% monthly increase, which may influence broader industrial sentiment.