Trafigura Secures 10-Year Offtake Deal with Smackover Lithium for U.S. Battery-Grade Lithium
Global commodities trader Trafigura has signed a binding take-or-pay offtake agreement with Smackover Lithium for battery-grade lithium carbonate from the South West Arkansas (SWA) project in the United States.
Smackover Lithium is a joint venture between Standard Lithium and Equinor.
Under the agreement, Trafigura will purchase 8,000 tons per year of lithium carbonate over a ten-year period, totaling 80,000 tons, with deliveries commencing once commercial production begins.
The SWA project aims for an initial production of 22,500 tons per year of battery-grade lithium carbonate, with potential for future expansion.
Smackover Lithium plans to make a final investment decision in 2026, targeting first production in 2028. The project will use direct lithium extraction (DLE) technology to recover lithium from brine resources in the Smackover Formation in southern Arkansas.
Trafigura highlighted that the agreement supports the development of domestic lithium supply in the U.S., strengthening supply chains for a critical mineral widely used in battery manufacturing and emerging technologies.
“We are pleased to have signed this offtake agreement with Smackover Lithium, further strengthening our North American critical minerals footprint,” said Gonzalo De Olazaval, Trafigura’s Head of Metals and Minerals.
“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 delivering this material to customers across North America and globally.”
This agreement positions Trafigura as a key player in the U.S. battery materials market, supporting the country’s shift toward energy storage and electric vehicle supply chain security.
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