Trafigura to secure lithium supply from Smackover project in US

Trafigura has entered into a binding take-or-pay offtake statement with Smackover Lithium to unafraid battery-grade lithium carbonate from the South West Arkansas (SWA) task successful the US.

Smackover Lithium is simply a associated task (JV) betwixt Standard Lithium and Equinor subsidiaries.

The statement includes the acquisition of 8,000 tonnes per annum (tpa) for a play of 10 years, totalling 80,000t.

Deliveries are scheduled to commence with the commencement of commercialized accumulation successful 2028.

The SWA task initially aims to nutrient 22,500tpa of battery-quality lithium carbonate, with plans for further expansion.

Direct lithium extraction exertion volition beryllium utilized to extract lithium from brine resources successful the Smackover Formation successful confederate Arkansas.

The task is expected to scope its last concern determination (FID) by 2026.

The offtake statement is simply a portion of efforts to bolster US home lithium accumulation and heighten proviso concatenation information for this important mineral utilized successful artillery manufacturing and technological advancements.

Standard Lithium CEO David Park said: “The execution of this offtake statement was the culmination of months of collaboration and dialog and is simply a large milestone successful moving the SWA task towards FID and construction.

“We are excited astir the accidental to collaborate with a beardown manufacture person similar Trafigura and look guardant to providing them with high-quality lithium carbonate to service increasing home and planetary markets successful the coming years.”

Smackover Lithium's archetypal signifier targets lawsuit agreements covering astir 80% of its yearly nameplate capacity, with this woody representing much than 40% of the planned commitments.

The JV is actively negotiating further agreements and conducting an offtake process alongside task financing activities.

Additional lawsuit agreements are anticipated arsenic portion of preparations for the FID and adjacent of task financing.

In November 2025, Smackover Lithium filed its archetypal inferred assets study for the Franklin task successful north-east Texas, US.

"Trafigura to unafraid lithium proviso from Smackover task successful US" was primitively created and published by Mining Technology, a GlobalData owned brand.

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