Equinor takes 45% stake in lithium projects in Arkansas, Texas
USA
LITTLE ROCK, May 8, 2024 – Equinor has acquired a 45% stake in two lithium project companies in the USA from Standard Lithium, the Norwegian energy major announced on Wednesday.
The move is part of a trend of energy players securing involvement in energy transition minerals projects, as seen in ExxonMobil‘s entry into the lithium production segment, announced late last year. Lithium is vital for the production of electric vehicles and batteries.
The two projects are located in Southwest Arkansas and East Texas. Standard Lithium will retain operatorship and the remaining 55% stake in each.
The projects will deploy direct lithium extraction (DLE) technologies, which entail a lower environmental footprint than traditional production methods. DLE involves extracting lithium from brines located deep underground, then reinjecting the brine without lithium back into the subsurface.
Under the terms of the agreement, Equinor will compensate Standard Lithium for USD 30 million in past costs net to the acquired interest and will carry Standard Lithium’s capex of USD 33 million to progress the assets towards a possible final investment decision. Equinor will make milestone payments of up to USD 70 million in aggregate to Standard Lithium if a final investment decision is taken.
“Sustainably produced lithium can be an enabler in the energy transition, and we believe it can become an attractive business,” said Morten Halleraker, senior vice-president for new business and investments in technology, digital and innovation at Equinor.
“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.”
Photo courtesy of Equinor.
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