Global commodities trader Trafigura has agreed to purchase lithium produced from salty water in southern Arkansas, as manufacturers aim to boost production of the critical mineral used in battery technology.
Trafigura on Monday announced it had signed a binding offtake agreement with Smackover Lithium, which plans to produce battery-grade lithium carbonate from its South West Arkansas Project later this decade.
This week’s agreement is a significant step in Smackover Lithium’s efforts to secure purchase agreements for its production.
Smackover Lithium is a joint venture between Standard Lithium and Equinor, the Norwegian energy giant. The South West Arkansas Project has 30,000 acres of brine leases in southern Arkansas, much of which is inside the Reynolds Brine Unit. Smackover Lithium expects to make a final investment decision on the project later this year, with first production anticipated for 2028.
