Standard Lithium partners with Equinor on sustainable lithium extraction

Mining Technology· Equinor.
GlobalData
2 min read
0
In this article:

Standard Lithium has announced a strategic partnership with Equinor, which will see an investment of up to $160m to advance sustainable lithium projects in Arkansas, US.

This collaboration aims to leverage Standard Lithium's DLE expertise and Equinor's project execution capabilities.

Under the agreement, Equinor will invest up to $160m, securing a 45% stake in Standard Lithium's projects in south-west Arkansas and east Texas properties (projects).

The investment includes a $30m cash payment to Standard Lithium at closing and a $60m work programme funded by Equinor. This programme includes a $33m carry for Standard Lithium's portion and $27m for Equinor's share in the projects.

Upon positive final investment decisions by both parties, Standard Lithium could receive up to $70m in additional payments.

Standard Lithium CEO Robert Mintak said: “This partnership with Equinor is a major accomplishment for Standard Lithium. It has long been our belief that success in this sector hinges on strategic partnerships with companies who share our vision and bring complementary strengths.

“Equinor’s culture and values align with ours in using innovation, integrity and responsible development to enable the global energy transition.

“With this partnership, we have the opportunity to accelerate our progress and carve out a significant role in shaping the future of sustainably produced lithium.”

The ownership split of the projects will be 55% for Standard Lithium and 45% for Equinor, with Standard Lithium maintaining operational control.

The partnership is poised to combine Standard Lithium's proprietary DLE process with Equinor's experience in subsurface assessment and production.

This alliance is expected to significantly mitigate project execution risks, particularly in the development phase at the south-west Arkansas site.

The deal not only bolsters Standard Lithium's financial standing but also ensures that the agreed project development expenses will be carried without diluting the value for existing shareholders.

Equinor New Business and Investments in Technology, Digital and Innovation senior vice-president Morten Halleraker said: “We are looking forward to developing these opportunities in the Smackover Formation together with Standard Lithium.

“With Standard Lithium as operator and by building on Equinor's core competencies such as subsurface and project execution capabilities, we believe that more sustainably produced lithium has growth potential and will be an enabler for the energy transition.”

"Standard Lithium partners with Equinor on sustainable lithium extraction" was originally created and published by Mining Technology, a GlobalData owned brand.


 


The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.

Advertisement

Recommended Stories

  • Beyond the AI Hype: 3 Tech Stocks Poised for Explosive Growth

    AI isn't the only market-moving power in today's tech sector. These explosive growth stocks are getting it done with hardly any exposure to the AI boom.

  • Boeing, Airbus Working With Saudi Arabia on Metals for Planes

    (Bloomberg) -- Saudi Arabia said it’s working with top airplane makers Boeing and Airbus to get its aluminum and titanium approved for use in their planes as part of a push to get more manufacturing done inside the kingdom.Most Read from BloombergIran State TV Says ‘No Sign of Life’ at Helicopter Crash SiteSpeedier Wall Street Trades Are Putting Global Finance On EdgeJamie Dimon Says Succession at JPMorgan Is ‘Well on the Way’Hims Debuts $199 Weight-Loss Shots at 85% Discount to WegovyOne of the

  • Lithium Miners Shake Up Trading to Tackle Wild Price Swings

    (Bloomberg) -- The world’s lithium miners — facing an unprecedented demand surge and wild price swings — are shaking up the way the commodity is bought and sold.Most Read from BloombergIran State TV Says ‘No Sign of Life’ at Helicopter Crash SiteSpeedier Wall Street Trades Are Putting Global Finance On EdgeSaudi Crown Prince Postpones Japan Trip Over King’s HealthEbrahim Raisi, Iranian President Confronting West, Dies at 63China’s Housing Rescue Too Small to End Crisis, Analysts SayAs lithium em

  • Audi furthers EV push into China with new platform agreement

    Volkswagen’s Audi premium group is pushing deeper into the Chinese market with domestic partnerships, signing a deal with state-owned SAIC to develop new EVs for the mainland. This comes as global rivals like GM and Ford look to minimize losses in the region.

  • Tyson Foods (TSN) Up More Than 25% in 6 Months: Here's Why

    Tyson Foods' (TSN) iconic brands continue to resonate with consumers, contributing to market share growth. The company's growth strategy is based on three main pillars.

  • 3 Steel Producer Stocks to Escape Industry Headwinds

    A pullback in steel prices and the sluggishness in China mar prospects for the Zacks Steel Producers industry. STLD, TX and USAP are well poised to navigate the current challenging environment.

  • Why Did U.S. Natural Gas Prices Move Up 16.6% Last Week?

    With natural gas price action remaining positive but volatile, we recommend investors hold onto companies with strong fundamentals, such as CTRA and LNG.

  • Factbox-JPMorgan leaders shaping its strategy as succession comes into focus

    CEO Jamie Dimon and President Daniel Pinto are among the key executives expected to be present. Contenders for the top job include Jennifer Piepszak and Troy Rohrbaugh, recently appointed co-CEOs of JPMorgan's expanded commercial and investment bank, Marianne Lake, CEO of consumer and community banking, and Mary Erdoes, CEO of asset and wealth management.

  • Usha to sell stake in Jackpot Lake Lithium project in Nevada, US

    The letter of intent (LOI) is non-binding and the deal's finalisation is contingent upon several conditions including due diligence.

  • Zacks Industry Outlook Highlights Woodward, Badger Meter and Thermon Group

    Woodward, Badger Meter and Thermon Group have been highlighted in this Industry Outlook article.