Equinor buys 45% stake in two US lithium projects

Standard Lithium

08/05/2024 14:04

May 8 (Reuters) - Equinor  EQNR.OL  on Wednesday said it
has entered an agreement with Standard Lithium Limited to
acquire a 45% stake in lithium projects located in Southwest
Arkansas and East Texas. 
    Equinor will initially compensate Standard Lithium $30
million and cover project expenses up to $33 million.   
Potential future milestones could see Equinor pay an additional
$70 million in aggregate to Standard Lithium if a final
investment decision is taken, the release added. 
    Standard Lithium will retain operatorship, with Equinor
contributing its experience in subsurface operations.
    "We see sustainably produced lithium as an enabler in the
energy transition," as this partnership allows Equinor to enter
the lithium space while focusing on environmentally friendly
Direct Lithium Extraction (DLE)technologies, Equinor senior vice
president Morten Halleraker said. 
    President Joe Biden's landmark climate change law created
big subsidies for producers of minerals like lithium, a key
material for electric vehicles and battery storate, and copper
that are needed in equipment like batteries and solar panels.

 (Reporting by Rahul Paswan in Bengaluru; Editing by Chizu
Nomiyama)
 ((RahulKumar.Paswan@thomsonreuters.com ; If within U.S. +1 646
223 8780;;))