Lithium extraction tech secures decade-long deal for 8,000 tons of battery material

A new US lithium deal will secure 8,000 metric tonnes of battery-quality lithium carbonate each year for 10 years, giving a major battery maker a long-term domestic source of a key material. The lithium carbonate will come from the South West Arkansas (SWA) Project in Arkansas, developed by Smackover Lithium, a partnership between Standard Lithium and Equinor. The project will use direct lithium extraction (DLE) and purification to produce battery-grade lithium carbonate. The agreement is aimed at supporting lithium iron phosphate (LFP) battery production for the growing North American energy storage market. For the battery maker, the deal also helps build a local supply chain in the US, connecting domestic lithium sourcing with its existing battery manufacturing operations. Arkansas lithium enters pipeline The 10-year agreement represents a potential 80,000 metric tonnes of lithium carbonate over the contract period. The material will meet non-Prohibited Foreign Entity (non-PFE) requirements, an increasingly important consideration for companies seeking to build supply chains within the US. The lithium will be used as a key material for cathode production in LFP batteries. LFP chemistry has become increasingly important in energy storage because it offers a different balance of cost, durability and safety compared with other lithium-ion chemistries. The deal comes as electricity demand and the deployment of energy storage systems continue to grow in North America. Battery manufacturers are under pressure to secure reliable supplies of critical materials while reducing exposure to overseas supply chains. The battery company already operates seven production facilities in the US, including three standalone sites. Several have production capacity for LFP batteries. By combining those manufacturing operations with lithium carbonate produced in Arkansas, the agreement creates a more localized path from raw material sourcing to battery production. “We are excited to be entering into this agreement with LG Energy Solution, one of the world’s leading battery producers with a diverse and global customer base and a presence in many dynamic and growing industry segments,” said David Park, CEO of Standard Lithium. “We expect this to be the beginning of a long and mutually beneficial partnership whereby we will provide LG Energy Solution with a long-term supply of U.S.-based and sustainably produced battery-quality lithium carbonate.” The SWA Project will use DLE to extract lithium before purification into battery-quality lithium carbonate. Unlike conventional mining approaches, DLE is designed to selectively extract lithium from lithium-bearing brine. The process is becoming a major technology focus as companies look for ways to increase domestic lithium production while limiting the land and material requirements associated with conventional extraction. For the US battery industry, developing local lithium production could also reduce dependence on imported materials and strengthen supply security for rapidly expanding energy storage and electric vehicle markets. The agreement is another step in that direction, pairing domestic lithium extraction with an established US battery manufacturing footprint. “We are pleased to begin this partnership with Smackover Lithium and the agreement marks another step toward establishing a solid and resilient supply chain that keeps our products competitive in key strategic markets,” said Kang Yeol Lee, Procurement Center Leader of LG Energy Solution. “By bringing both battery production and sourcing to the U.S., we will deliver competitive and sustainable products to our customers driving the global energy storage and EV markets.”Get the latest in engineering, tech, space & science - delivered daily to your inbox.With over a decade-long career in journalism, Neetika Walter has worked with The Economic Times, ANI, and Hindustan Times, covering politics, business, technology, and the clean energy sector. Passionate about contemporary culture, books, poetry, and storytelling, she brings depth and insight to her writing. When she isn’t chasing stories, she’s likely lost in a book or enjoying the company of her dogs.