Shares of Standard Lithium Ltd. advanced on Tuesday following significant news regarding the funding for its flagship Arkansas lithium development. The company’s joint venture, Smackover Lithium, has received expressions of interest for over $1 billion in project financing from three major export credit agencies, marking a pivotal step toward production.
A Competitive Financing Landscape Takes Shape
In an announcement dated December 9, the Smackover Lithium JV disclosed that three leading export credit agencies have signaled their interest in providing debt financing exceeding $1 billion. Among the named agencies are the Export-Import Bank of the United States (EXIM) and Norway’s Eksfin (Export Finance Norway), with a third agency remaining unnamed at this time.
The total targeted debt financing for Phase 1 of the South West Arkansas (SWA) project is up to $1.1 billion. According to the company, the combined interest from these export credit agencies and commercial lenders already surpasses this target amount.
David Park, Chief Executive Officer of Standard Lithium, commented on the strong market reception, stating, “We have seen very strong interest from export credit agencies and commercial lenders to partner with us to develop the first lithium project in the Smackover.” He noted that the non-binding proposals received feature competitive terms.
Project Economics and Capital Structure
The total capital investment required for the SWA project is estimated at $1.45 billion. This capital structure is composed of several key elements:
- Project Debt Financing: Up to $1.1 billion.
- U.S. Department of Energy Grant: A $225 million award announced in January 2025.
- Equity Contributions: Proportional investments from the joint venture partners, Standard Lithium (55%) and Equinor (45%).
A feasibility study released in the third quarter of 2025 outlines robust project metrics:
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- Annual Production Capacity: 22,500 tonnes of lithium carbonate.
- Proven Reserves: 447,000 tonnes of lithium carbonate equivalent.
- Average Operating Costs: $4,516 per tonne.
- Pre-Tax Unlevered Internal Rate of Return (IRR): 20.2%.
The Race for Commercial Production in a Key Region
The development positions Standard Lithium in a competitive race with Exxon Mobil to become the first commercial lithium producer in Arkansas. The Smackover Formation, a geological structure stretching from Florida to Texas, is reported by the U.S. Geological Survey to contain over 5 million tonnes of lithium, ranking it among the largest such resources in North America.
The venture utilizes Direct Lithium Extraction (DLE) technology, which has been validated through extensive field testing. Beyond the SWA project, Smackover Lithium also holds the Franklin project in East Texas. This asset boasts an estimated 2.2 million tonnes of lithium carbonate equivalent with average lithium brine concentrations of 668 mg/L—reportedly the highest published grades in North America.
Path Forward to Final Investment Decision
Allison Kennedy Thurmond, Equinor’s Vice President for US Lithium, emphasized the importance of securing funding, saying, “Securing an attractive and comprehensive project financing package is critical to moving the SWA project into the construction phase.”
The partnership is targeting a Final Investment Decision (FID) by the end of 2025. If approved, construction would commence in 2026, with first production anticipated in 2028.
A critical note for investors: The expressions of interest received are not binding financing commitments. They remain subject to standard due diligence, credit approvals, and successful negotiation of definitive agreements. Concurrently, the company is advancing offtake agreements with potential customers, which are a crucial component for finalizing the complete financing structure.
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