Smackover Lithium Signs Binding Customer Offtake with LG Energy Solution for the South West Arkansas Project

Standard Lithium Ltd. (SLI), through its Smackover Lithium joint venture, has signed a binding take-or-pay offtake agreement with LG Energy Solution. The deal commits the company to supply 8,000 metric tonnes per year of battery-quality lithium carbonate over a 10-year period following commercial production.

This agreement, combined with a prior contract with Trafigura, brings the total committed offtake volume to approximately 16,000 metric tonnes per year. This figure represents roughly 90% of the South West Arkansas (SWA) Project's targeted annual capacity of 22,500 metric tonnes. The remaining ~10% of volume is currently in advanced discussions with prospective customers.

The offtake portfolio supports the contemplated $1.1 billion project debt structure and duration. Management targets a Final Investment Decision (FID) in 2026, with construction to begin promptly thereafter and first commercial production expected in 2029.

Standard Lithium Ltd. (SLI) has secured an agreement with LG Energy Solution, a development that follows the Trafigura offtake deal signed in early 2026. This new arrangement addresses one of the four primary pre-FID deliverables, specifically customer offtake agreements.

The company’s recent news progression demonstrates a clear execution trajectory. A Definitive Feasibility Study was filed in October 2025, followed by the raising of $130M in equity during the same month. The Trafigura offtake was secured in March 2026, and the NEPA environmental review concluded with a Finding of No Significant Impact in May 2026. Key EPC/EPCM contracts were also awarded in May 2026.

This latest release brings total offtake coverage to 90%, significantly de-risking the $1.1 billion senior secured project debt financing from Export Credit Agencies and commercial banks. The announcement aligns with management's Q1/Q2 guidance to finalize remaining offtake agreements by Q3 2026.

Standard Lithium Ltd. is a pre-commercial, development-stage lithium company focused on Direct Lithium Extraction (DLE) from brine in the Smackover Formation. Its flagship South West Arkansas (SWA) Project is developed via the Smackover Lithium JV, in which Standard Lithium holds a 55% stake and Equinor holds 45%. The project targets 22,500 tonnes per annum of battery-grade lithium carbonate over a 20-year mine life.

According to the Definitive Feasibility Study (DFS), the project’s economic profile includes an unlevered pre-tax IRR of 20.2%, all-in cash operating costs of $5,924/t, and Class III capital expenditures of $1.45 billion.

Standard Lithium also holds the East Texas Franklin Project, which contains a maiden inferred resource of 2.16 million tonnes LCE at high grades of 668 mg/L Li. The project features significant co-products, including potash and bromide. A Preliminary Economic Assessment (PEA) is planned for the second half of 2026.