Equinor has recently forged an agreement with Standard Lithium Ltd to secure a 45 percent stake in two lithium project companies situated in Southwest Arkansas and East Texas.

Morten Halleraker, senior vice president for New Business and Investments in Technology, Digital, and Innovation at Equinor, emphasised the potential of sustainably produced lithium in facilitating the energy transition. He stated, “This investment is an option with limited upfront financial commitment. We can utilise core technologies from oil and gas in a complementary partnership to mature these projects towards a possible final investment decision.”

According to the terms of the agreement, Equinor will reimburse Standard Lithium for past costs amounting to USD 30 million, net to the acquired interest, and will cover Standard Lithium’s capex of USD 33 million to advance the assets towards a potential final investment decision. Additionally, Equinor has committed to milestone payments of up to USD 70 million in aggregate to Standard Lithium if a final investment decision is reached.

Lithium plays a pivotal role in the energy transition, particularly in meeting the escalating demand for electric vehicles and broader battery energy storage. Direct Lithium Extraction technologies, employed for lithium production from subsurface reservoirs, offer a promising avenue with a lower environmental impact compared to conventional methods.

In this collaboration, Standard Lithium and Equinor will hold 55 percent and 45 percent shares, respectively, in the two project companies, with Standard Lithium retaining operatorship. Equinor aims to lend its expertise in subsurface operations and project execution to support the operator in driving these projects forward.

For more information visit www.equinor.com

13th May 2024