Trafigura Secures Lithium Supply from Smackover Project in US

The agreement includes the purchase of 8,000 tonnes per year for a decade.

Published on Mar. 9, 2026

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Trafigura has entered into a binding take-or-pay offtake agreement with Smackover Lithium, a joint venture between Standard Lithium and Equinor subsidiaries, to secure battery-grade lithium carbonate from the South West Arkansas (SWA) project. The agreement includes the purchase of 8,000 tonnes per annum for a period of ten years, totaling 80,000 tonnes, with deliveries scheduled to commence with the start of commercial production in 2028.

Why it matters

This deal is part of efforts to bolster domestic lithium production in the US and enhance supply chain security for this crucial mineral used in battery manufacturing and technological advancements. The SWA project is expected to produce 22,500 tonnes per year of battery-quality lithium carbonate, with plans for further expansion.

The details

The SWA project will use direct lithium extraction technology to extract lithium from brine resources in the Smackover Formation in southern Arkansas. The project is expected to reach its final investment decision by 2026. Smackover Lithium's initial phase targets customer agreements covering approximately 80% of its annual nameplate capacity, with this deal representing more than 40% of the planned commitments.

  • The offtake agreement is scheduled to commence with the start of commercial production in 2028.
  • Smackover Lithium filed its first inferred resource report for the Franklin project in north-east Texas, US in November 2025.
  • The SWA project is expected to reach its final investment decision by 2026.

The players

Trafigura

A global commodities trading and logistics company.

Smackover Lithium

A joint venture between Standard Lithium and Equinor subsidiaries, focused on the South West Arkansas (SWA) lithium project.

Standard Lithium

A lithium development company that is a partner in the Smackover Lithium joint venture.

Equinor

A Norwegian multinational energy company that is a partner in the Smackover Lithium joint venture.

David Park

The CEO of Standard Lithium.

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What they’re saying

“The execution of this offtake agreement was the culmination of months of collaboration and negotiation and is a major milestone in moving the SWA project towards FID and construction.”

— David Park, CEO, Standard Lithium (Mining Technology)

What’s next

The SWA project is expected to reach its final investment decision by 2026, and the offtake agreement with Trafigura is scheduled to commence with the start of commercial production in 2028.

The takeaway

This deal highlights the growing importance of securing domestic lithium supplies in the US to support the country's battery manufacturing and clean energy goals. The Smackover project's use of innovative extraction technology and its partnership with a major global trader like Trafigura are positive signs for the project's potential to contribute to the US lithium supply chain.