Agreement secures 80,000 tonnes of battery-grade lithium carbonate from US domestic production over 10 years
rafigura, a market leader in the global commodities industry, has signed a binding take-or-pay offtake agreement with Smackover Lithium, a joint venture between Standard Lithium Ltd and Equinor, through subsidiaries of Equinor ASA, for the supply of battery-grade lithium carbonate from the South West Arkansas Project (the “SWA Project”).
Under the agreement, Trafigura will purchase 8,000 metric tonnes per year of lithium carbonate over a 10-year period, totalling 80,000 tonnes, with deliveries beginning at the start of commercial production. The SWA Project is targeting initial production of 22,500 tonnes per annum of battery-quality lithium carbonate, with opportunity for further expansion. Smackover Lithium is expected to achieve Final Investment Decision for the SWA Project during 2026, with first production anticipated in 2028.
The offtake agreement supports the development of domestic lithium production, strengthening US supply chain security for this critical mineral essential to battery manufacturing and technological development. The SWA Project will use direct lithium extraction technology to produce lithium from brine resources in the Smackover Formation in southern Arkansas.
Gonzalo De Olazaval, Head of Metals and Minerals at Trafigura, commented: “We are pleased to have signed this offtake agreement with Smackover Lithium, further strengthening our North American critical minerals footprint. The SWA Project is expected to provide a reliable source of battery-grade lithium carbonate produced in the United States, enhancing domestic supply chains. We look forward to collaborating with Smackover Lithium on this strategic project and to delivering this material to customers across North America and globally.”
Source: cyprusshippingnews.com
