Equinor on Wednesday said it has entered an agreement with Standard Lithium 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 storage, and copper that are needed in equipment like batteries and solar panels.
