On May 8, 2024, Standard Lithium Ltd., a leading near-commercial lithium development company, completed a strategic partnership with Equinor ASA, a multinational energy company and leader in renewables and low-carbon solutions, to accelerate the development of Standard Lithium’s large-scale, sustainable lithium projects in the Smackover Formation.
The transaction includes a contribution by Equinor of up to US$160 million consisting of (i) a US$30 million cash payment to Standard Lithium at closing; (ii) a work program solely funded by Equinor of US$60 million, representing a US$33 million carry by Equinor for Standard Lithium’s portion, and US$27 million for Equinor’s portion at the South West Arkansas Project and East Texas properties (the “Projects”); and, (iii) up to US$70 million in milestone payments to Standard Lithium.
Standard Lithium and Equinor will each own 55% and 45% of the Projects respectively, with Standard Lithium retaining operatorship.
Cassels acted for Standard Lithium.