LG Energy Solutions secures American supply of lithium carbonate

LG Energy Solution has signed a 10-year deal with Smackover Lithium to buy 8,000 metric tonnes of battery-grade lithium carbonate a year, sourced from a project in Arkansas. Smackover Lithium is a partnership between Standard Lithium and the energy company Equinor. The lithium will come from the South West Arkansas Project, which is set to start construction in 2026, with production beginning in 2029.

LG Energy Solution makes batteries in the U.S., including at plants that already produce LFP (lithium iron phosphate) batteries, a common chemistry used in home battery storage systems. By pairing its U.S. factories with a U.S. source of lithium, the company is building a supply chain that runs entirely within the country, from raw material to finished battery. The lithium will also be extracted using a method called direct lithium extraction, which the companies describe as a more sustainable way to pull lithium from underground brine than traditional mining.

For homeowners, this doesn't change any programs or rebates right now. But it points to more domestic manufacturing of the batteries used in home solar and storage systems, which over time could mean steadier supply and pricing for battery storage as more of the material and manufacturing happens on U.S. soil rather than depending on imports.