Mentioned:
Standard Lithium has just landed a large new lithium carbonate supply deal. And the buyer is one of the biggest battery producers in the world.
What’s happening:
- Standard Lithium's (NYSE: SLI) joint venture company Smackover Lithium has entered into a new deal with LG Energy Solution to supply them with 8,000 tonnes of lithium carbonate annually
By the numbers:
- The deal between LG Energy Solution and Smackover Lithium is structured as a binding take-or-pay deal over 10 years
Why it matters:
- This is the first binding lithium carbonate supply deal that Smackover Lithium has ever entered into with a global battery manufacturer
Going deeper:
- Standard Lithium is the majority owner of the Smackover Lithium joint venture with a 55% equity stake and Norway state-controlled oil and gas major Equinor owns the remaining 45%
- LG Energy Solution has publicly stated that the supply deal with Smackover Lithium will be used to produce batteries for both energy storage and electric vehicles within North America
The fine print:
- Standard Lithium has publicly stated they do not expect to begin making deliveries to LG Energy Solution for at least three years
