LSB Industries Inks Strategic 5-Year Supply Deal with Freeport on Low Carbon Ammonium Nitrate

LSB Industries, Inc. (NYSE: LXU), the Oklahoma City-based chemical manufacturer, has secured a significant long-term partnership with mining giant Freeport Minerals Corporation, marking a tangible step toward decarbonizing industrial supply chains. Under the agreement, LSB Industries will deliver up to 150,000 short tons annually of low carbon ammonium nitrate solution (ANS) to Freeport’s U.S. copper mining operations beginning January 1, 2025, with volumes ramping up progressively over the initial phase.

Bridging Production and Climate Goals

The contract underpins LSB Industries’ broader initiative to integrate carbon capture technology into its ammonia production workflow. Working alongside Lapis Energy, the company is deploying a carbon capture and sequestration system at its El Dorado, Arkansas production facility designed to trap and permanently sequester approximately 450,000 metric tons of CO2 annually—a byproduct of ammonia manufacturing. This approach is expected to yield roughly 375,000 tons of low carbon ammonia each year, which LSB Industries can then market to customers either in its original form or as derivative nitrogen products like the ANS pledged to Freeport.

Timeline and Regulatory Pathway

Operations are slated to begin in 2026, contingent on EPA approval of the Class VI permit application that LSB Industries and Lapis Energy submitted together. Industry observers anticipate regulatory clearance by the second half of 2025. The five-year commitment reflects growing industrial demand for decarbonized inputs as global enterprises accelerate their net zero initiatives.

Market Implications

According to Mark Behrman, President and CEO of LSB Industries, the partnership validates a strategic thesis: that industrial and mining customers increasingly recognize low carbon products as essential tools for achieving emission-reduction targets and will compensate suppliers accordingly. The Freeport agreement positions LSB Industries as an emerging player in the industrial energy transition, demonstrating that regulated carbon capture can unlock competitive advantage in commodity markets.

LSB Industries operates ammonia and related manufacturing facilities across Cherokee, Alabama; El Dorado, Arkansas; and Pryor, Oklahoma, while also managing a contracted operation in Baytown, Texas for a global chemical producer.