Standard Lithium has announced the strategic alliance with Equinor, which contemplates an investment that could reach 160 million dollars to promote the development of sustainable lithium extraction projects in Arkansas, United States. This agreement aims to combine Standard Lithium’s specialization in direct lithium extraction (DLE) with the strength in project execution that characterizes Equinor.
Equinor commitment to lithium extraction
Under the terms of the agreement, Equinor agrees to invest up to $160 million, which would guarantee it a 45% interest in Standard Lithium projects located in the southwest Arkansas and eastern Texas areas. The financing will include an initial disbursement of $30 million to Standard Lithium upon completion of the agreement and a program of work valued at $60 million, which will be funded by Equinor.
This work program is divided into a contribution of 33 million dollars destined for the part corresponding to Standard Lithium, and 27 million dollars will be to cover Equinor’s participation in the aforementioned projects. If the parties reach an agreement for a positive final investment, Standard Lithium could receive up to an additional $70 million in subsequent payments.
Standard Lithium and Equinor join forces
The CEO of Standard Lithium , Robert Mintak, has highlighted the importance of this collaboration with Equinor. Mintak emphasizes that success in the lithium space crucially depends on forming strategic alliances with other companies that not only share a similar vision, but also provide complementary skills and capabilities for the development of the sector.
These types of initiatives are crucial for the global energy transition, since lithium is an essential component in the manufacture of batteries for electric vehicles. The process of extracting lithium sustainably contributes to the reduction of the carbon footprint , and ensures a more stable supply of this critical mineral in the global supply chain, thus facilitating more significant progress towards environmental sustainability.
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Source: mining-technology
Photo: Shutterstock
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