Smackover Lithium Tops Offtake Target With Expanded Trafigura Deal

Smackover Lithium has amended its offtake agreement with Trafigura Trading LLC of Houston for the South West Arkansas (SWA) Project in Lafayette County, giving it the option to sell up to 4,000 more tons of battery-quality lithium carbonate a year.

• The amendment, announced Sept. 28, would raise potential annual deliveries to Trafigura to 12,000 tons over the 10-year, take-or-pay deal. Pricing is confidential.

Smackover Lithium is a joint venture of Standard Lithium Ltd. of Vancouver, British Columbia, and Equinor of Stavanger, Norway.

Exceeding Target

Trafigura became the project’s first customer in March for 8,000 tons a year, followed by LG Energy Solution of Seoul, South Korea, at the same volume. Possible commitments now total 20,000 tons a year, topping the company’s 18,000-ton target, or about 80% of the plant’s 22,500-ton annual capacity in its initial phase.

Because the added volume is optional, Smackover Lithium can steer it to other buyers if a better deal emerges:

• “The offtake process has been one of the most important and time-intensive workstreams and we now have the volume commitments needed to support our Project debt financing,” Standard Lithium CEO David Park said in a news release.

What’s Next

Smackover Lithium is now focused on closing about $1.1 billion in debt financing. The company said due diligence is underway with three export credit agencies. It’s targeting a final investment decision (FID) later this year and first commercial production in 2029.

• “Our path forward is clear as we focus on finalizing and closing the Project financing, taking FID and beginning construction,” Park said.

Previously: Smackover Lithium Reaches First Offtake Agreement for SWA Project