Standard Lithium Ltd. has advanced its South West Arkansas Project toward commercialisation after its Smackover Lithium partnership signed a second binding take-or-pay offtake agreement with LG Energy Solution.

Under the terms of the agreement, the project will supply LG Energy Solution with 8,000 metric tonnes per year of battery-quality lithium carbonate over a 10-year period following the start of commercial production. Pricing and key commercial terms remain confidential but are structured to support anticipated project financing.

The South West Arkansas Project is being developed by Smackover Lithium, a joint venture formed in May 2024 in which Standard Lithium holds a 55% interest and operatorship, and Equinor holds a 45% interest.

The company previously announced its first binding offtake agreement with Trafigura for 8,000 metric tonnes per year. The new contract with LG Energy Solution increases total committed offtake to roughly 90% of targeted capacity, surpassing the project's initial phase goal of securing 80% of its 22,500 metric tonnes of annual nameplate lithium carbonate capacity. The partnership is in advanced discussions with prospective customers and aims to conclude the offtake process shortly with one additional smaller agreement.

“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. The Agreement further anchors our customer offtake portfolio, complementing the contract with Trafigura we announced in March of this year, and is another major milestone in the development of the SWA Project. We have now secured a vast majority of the offtake agreements needed to move forward with our Project financing plans and a Final Investment Decision. 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.”

— David Park, Chief Executive Officer of Standard Lithium

The customer offtake process runs in conjunction with project financing. Smackover Lithium previously highlighted indications of interest for over $1 billion in project debt from three major Export Credit Agencies, with due diligence well underway. The partnership is targeting a Final Investment Decision this year, with construction planned to begin promptly following FID to enable first commercial production in 2029.

Read the full announcement: Smackover Lithium Signs Binding Customer Offtake with LG Energy Solution for the South West Arkansas Project