Equinor Pumps Millions Into Standard Lithium's Sustainable Projects

Zinger Key Points
  • Strategic alliance between Standard Lithium and Equinor accelerates lithium project development.
  • Equinor's investment of up to $160 million reflects confidence in Standard Lithium's assets and expertise.

Equinor ASA EQNR has entered into a strategic partnership with Standard Lithium Ltd SLI, a near-commercial lithium development company.

This partnership aims to expedite the advancement of Standard Lithium’s sustainable lithium projects in the Smackover Formation.

The transaction, valued at up to $160 million, marks Equinor’s entrance into the lithium sphere. Equinor has a 45% ownership stake in Standard Lithium’s projects. 

This includes a $30 million cash payment upon closing and an additional investment of up to $130 million contingent on positive Final Investment Decisions.

Equinor will solely fund the first $40 million of development costs at SWA upon completing the transaction and fund the first $20 million in exploration and development costs at the ETX properties.

Standard Lithium will receive up to $70 million in milestone payments associated with SWA and ETX, subject to the parties making Final Investment Decisions by certain dates.

The partnership positions Standard Lithium as the majority owner and operator of the projects, leveraging Equinor’s experience in sub-surface assessment and production, project development, and financing.

“This partnership with Equinor is a major accomplishment for Standard Lithium,” said Standard Lithium CEO Robert Mintak. 

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

The transaction is expected to immediately strengthen Standard Lithium’s financial position.

The deal was facilitated by financial advisor Citi for Standard Lithium, with legal counsel provided by SkaddenArpsSlateMeagher & Flom LLP and Cassels Brock and Blackwell LLP.

Price Action: EQNR shares are trading lower by 0.23% at $28.05 at the last check Wednesday.

Photo via Shutterstock

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