Standard Lithium and Equinor Joint Venture Secures Over $1 Billion in ECA Interest for Arkansas Lithium Project

The Smackover Lithium joint venture between Standard Lithium Ltd. and Equinor has reported receiving over $1 billion in expressions of interest from major Export Credit Agencies, including EXIM and Export Finance Norway, for senior secured project debt to support Phase 1 construction of the South West Arkansas Project. This development is significant as it demonstrates substantial institutional confidence in a major domestic lithium production initiative at a time when securing critical mineral supply chains is a national priority. The joint venture is pursuing up to $1.1 billion in limited recourse project financing, which would combine ECA-backed lending and guarantees with an uncovered commercial bank tranche.

Market sounding with global lenders delivered strong interest at indicative terms that exceeded the targeted debt amount and aligned with expectations on cost, tenor, and structure. Management stated that the response underscores the project's strategic importance and technological de-risking as the joint venture advances toward a Final Investment Decision. All expressions of interest remain subject to due diligence, approvals, and definitive documentation. The financial backing from ECAs like EXIM and Export Finance Norway reduces financing risk and validates the project's economic and strategic merits, potentially accelerating the timeline toward commercial production.

Standard Lithium is focused on the sustainable development of large, high-grade lithium-brine properties in the United States, prioritizing projects with robust infrastructure and streamlined permitting. The company aims to achieve commercial-scale lithium production via a scalable Direct Lithium Extraction and purification process. This announcement matters because it represents a crucial step in scaling U.S. lithium production capacity, reducing dependence on foreign sources for a mineral essential to electric vehicle batteries and renewable energy storage. The project's advancement supports broader goals of energy security and domestic manufacturing resilience.

The company's flagship projects are in the Smackover Formation, a world-class lithium brine asset, focused in Arkansas and Texas. In partnership with global energy leader Equinor, Standard Lithium is advancing the South West Arkansas Project, a greenfield project located in southern Arkansas, and actively advancing a promising lithium brine resource position in East Texas. More information about the company is available at https://www.standardlithium.com. The implications extend to the broader lithium market, where successful project financing could establish a model for other North American developments, potentially influencing investment patterns and production timelines across the industry.

The full press release regarding the ECA interest can be viewed at https://ibn.fm/Tl1rh. This financial milestone indicates that major institutional lenders recognize the strategic value of domestic lithium production and the technological approach being employed. As the joint venture moves closer to a Final Investment Decision, the availability of substantial debt financing reduces execution risk and enhances the project's viability in a competitive global market for battery materials.