LEWISVILLE, Ark. – Smackover Lithium, a partnership between Standard Lithium Ltd. and Equinor ASA, through their respective subsidiaries, announced the signing of its second commercial offtake agreement for the South West Arkansas Project (SWA Project) with LG Energy Solution, a South Korean manufacturer of lithium-ion batteries. An offtake agreement is a legally binding contract between a producer and a buyer for a set amount of future goods before production officially starts.
Under the terms of this binding take-or-pay offtake agreement, the SWA Project will supply LG Energy with 8,000 metric tons per year of battery-quality lithium carbonate worth an estimated $1.5 billion over 10 years following the start of commercial production. Pricing and other key commercial terms were not disclosed.
The SWA Project is seeking customer offtake agreements totaling roughly 80% of the 22,500 metric tons of annual nameplate lithium carbonate capacity for its initial phase. Combining this agreement with the previously announced Trafigura offtake agreement for 8,000 metric tons per year over 10 years means that roughly 90% of the total targeted offtake volume has now been committed.
The partnership remains in advanced discussions with several prospective customers and, while the offtake process will end shortly, it expects to sign one more smaller agreement.
The customer offtake process is being run in conjunction with the SWA Project financing process and is critical to supporting the contemplated debt size, duration and structure.
“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," said David Park, Standard Lithium CEO. "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."
Kang Yeol Lee, procurement center leader of LG Energy, said bringing both battery production and sourcing to the U.S. will help provide competitive and sustainable products in the energy storage and EV markets.
Stantard Lithium
Smackover Lithium provided a financing update on December 9, 2025, highlighting indications of interest for more than $1 billion in project debt from three major export credit agencies. Export credit agencies are government-backed financial institutions like the Export-Import Bank of the United States (EXIM) that provide loans, guarantees and insurance to help domestic companies sell goods, services and investments abroad.
The due diligence process for financing is underway. The partnership said it is targeting a final investment decision this year. Construction is planned to begin promptly following the decision, with first commercial production of battery-quality lithium carbonate in 2029.
Smackover Lithium is a partnership between Standard Lithium, a Canadian company, and Equinor, a Norwegian company, through subsidiaries of Equinor ASA. Formed in May 2024, Smackover Lithium is developing multiple direct lithium extraction projects in Southwest Arkansas and East Texas. Standard Lithium owns a 55% interest, and Equinor holds the remaining 45% interest in the projects, with Standard Lithium maintaining operatorship.
Standard Lithium is a near-commercial lithium development company focused on the sustainable development of lithium-brine properties in the U.S. The company aims to achieve sustainable, commercial-scale lithium production by applying a scalable, fully integrated DLE and purification process. Flagship projects are in the Smackover Formation, an attractive lithium brine asset, focused in Arkansas and Texas. Standard Lithium is also advancing a promising lithium brine resource in East Texas, including the highest-known lithium brine-grade project in North America, the Franklin project.
"Arkansas sits at the heart of America's lithium boom, and we are ready to be a center not just of extraction, but of the refining and manufacturing that comes after it," said Arkansas Governor Sarah Huckabee Sanders. "Lithium is an economic opportunity for our state, which is why my administration has cut taxes, funded the training that puts South Arkansans into these jobs, and given this industry the regulatory certainty it needs to build here. But it's also a national security issue, and I'm glad Arkansas can help replace Chinese supply chains with our own, built right here in Arkansas.”
