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 critical domestic lithium supply chain initiative at a time of growing demand for battery materials. 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 project represents a major step toward establishing commercial-scale lithium production in the United States using sustainable methods.
Standard Lithium applies a scalable and fully integrated Direct Lithium Extraction and purification process at its projects, which are located 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. The company's approach prioritizes projects characterized by high-grade resources, robust infrastructure, skilled labor, and streamlined permitting.
The financial backing from Export Credit Agencies indicates recognition of the project's strategic value in strengthening North American battery material supply chains. This development comes as demand for lithium continues to grow with the expansion of electric vehicle production and energy storage systems. The expressions of interest from major financial institutions suggest that the project has achieved sufficient technological and commercial maturity to attract substantial debt financing. More information about the company is available at https://www.standardlithium.com. The full press release regarding the ECA interest can be viewed at https://ibn.fm/Tl1rh.
