LG Energy Solution (KRX:373220) entered into a long-term supply contract for lithium carbonate with U.S.-based lithium specialist developer Smackover Lithium, the South Korean firm said in a Tuesday release.

Under the deal, LG Energy Solution will receive 80,000 tons of lithium carbonate over a decade beginning in 2029 from Smackover Lithium. The supply will support production of about 1.8 million high-performance electric vehicles, the release said.

Smackover Lithium plans to produce the lithium in Arkansas using direct lithium extraction technology, it said.

Shares of LG Energy Solution fell nearly 3% at market close.