Smackover Lithium, a partnership between Standard Lithium Ltd. (NYSE American: SLI) and Equinor ASA, has signed a binding take-or-pay offtake agreement with LG Energy Solution to supply 8,000 metric tonnes per year of battery-quality lithium carbonate over a 10-year period from its South West Arkansas Project.

The supply will begin following the start of commercial production, which the partnership targets for 2029. Pricing and other key commercial terms were not disclosed, with the parties citing confidentiality provisions.

The agreement is the second commercial offtake deal secured for the project. The first, announced in March, was with commodity trader Trafigura, also for 8,000 metric tonnes per year over 10 years. Combined, the two agreements represent roughly 90% of the project's targeted offtake volume, which is set at approximately 80% of the project's 22,500 metric-tonne annual nameplate capacity for its initial phase. The partnership said it expects to sign one additional smaller agreement.

David Park, Chief Executive Officer of Standard Lithium, said the agreement "further anchors our customer offtake portfolio" and that the company has "secured a vast majority of the offtake agreements needed to move forward with our Project financing plans and a Final Investment Decision."

Kang Yeol Lee, Procurement Center Leader of LG Energy Solution, said the agreement "marks another step toward establishing a solid and resilient supply chain that keeps our products competitive in key strategic markets."

The offtake process is running alongside the project's financing process. According to a December 2025 update cited in the press release, three major Export Credit Agencies indicated interest in providing over $1 billion in project debt. The partnership said due diligence by those agencies is underway and that a Final Investment Decision is targeted for this year, with construction to begin promptly thereafter.