Standards Lithium JV receives integration OK for SWA

Executive Summary

• Smackover Lithium, a joint venture between Standard Lithium Ltd. and Equinor, received unanimous approval from the Arkansas Oil and Gas Commission (AOGC) for the final integration application for the Reynolds brine unit.
• This approval is a critical regulatory milestone for the South West Arkansas (SWA) project, providing certainty on the resource and derisking the development.
• The project aims for an initial annual capacity of 22,500 tonnes of battery-quality lithium carbonate, with first production targeted for 2028.

Key Details

• Regulatory Approval: Unanimous approval from the Arkansas Oil and Gas Commission (AOGC) for the integration application of the Reynolds brine unit.
• Project Location: South West Arkansas (SWA) project, specifically the Reynolds brine unit.
• Unitization Details: The Reynolds brine production area covers 20,854 acres. Unitization was previously approved on April 24.
• Royalty Terms: A 2.5% lithium royalty was approved on May 29, marking the first such royalty for lithium from brine in Arkansas.
• Production Capacity: Planned initial annual capacity of 22,500 tonnes of battery-quality lithium carbonate.
• Timeline: First production is expected in 2028.
• Joint Venture Structure: Smackover Lithium is a 55:45 owned JV between Standard Lithium Ltd. (55%, Operator) and Equinor (45%).
• Strategic Impact: The approval allows the partners to push towards a final investment decision (FID) for the SWA project as soon as practical.

Notable Quotes

• Dr. Andy Robinson, President and COO of Standard Lithium: "We thank the AOGC for its attention and support in granting integration approval for our project... With this key regulatory milestone behind us, we can continue to push towards a final investment decision for the SWA project as soon as practical."
• Allison Kennedy Thurmond, Vice-President for U.S. Lithium at Equinor: "Arkansas continues to be focused on driving economic growth through regulatory certainty... The unanimous approvals from AOGC for our unitization, royalty and now integration applications provide confidence for the SWA project to move forward."