Standard Lithium JV receives >$1B (U.S.) interest

Executive Summary

• Smackover Lithium Ltd. (a JV between Standard Lithium and Equinor) has received indications of interest from three major Export Credit Agencies (ECAs), including the US EXIM and Export Finance Norway, for over $1 billion in senior secured project debt.
• The company is seeking a total senior secured, limited recourse debt financing package of up to $1.1 billion to fund Phase 1 of the South West Arkansas (SWA) project.
• Combined interest from ECAs and commercial banks exceeds the targeted debt amount, validating assumptions regarding cost, term, and structure, though no commitments have been made yet.

Key Details

• Financing Target: Seeking up to $1.1 billion in total senior secured, limited recourse project debt.
• ECA Interest: Received expressions of interest from three major ECAs, specifically naming the Export-Import Bank of the United States (EXIM) and Export Finance Norway (Eksfin), for over $1 billion in senior secured project debt.
• Debt Structure: The financing package is expected to comprise:
  • Covered Tranche: ECA financing including direct lending and loan guarantees to a group of commercial banks.
  • Uncovered Tranche: Senior secured project debt from commercial banks.
• Market Validation: Earlier market soundings with global commercial banks yielded multiple expressions of interest for both tranches, with indicative terms consistent with JV expectations and customary for project debt facilities of this nature.
• Capital Expenditures: Total estimated capex for the SWA project is $1.45 billion, based on front-end engineering design (FEED) and definitive feasibility study (DFS) results.
• Funding Mix:
  • $225 million grant from the U.S. Department of Energy (awarded Jan 2025).
  • Up to $1.1 billion in project debt.
  • Pro rata equity contributions from Standard Lithium (55%) and Equinor (45%).
• Status: Expressions of interest are not commitments; they remain subject to due diligence, credit approvals, and negotiation of definitive documentation.

Notable Quotes

• David Park, CEO of Standard Lithium: "We have seen a very strong level of interest and engagement from export credit agencies and commercial lenders that are keen to partner with us in the development of the first lithium project in the Smackover. Expressions of interest have been at competitive indicative terms and exceed our targeted debt amount for the SWA project. This strong response demonstrates the availability of capital and underscores the project's strategic importance, competitiveness and technological derisking."
• Allison Kennedy Thurmond, VP for United States Lithium at Equinor: "Securing an attractive and comprehensive project financing package is a critical component of moving the SWA project into construction... We continue to make meaningful progress on this important workstream and are pushing to reach a final investment decision as soon as practical."