Standard Lithium Ltd. (NYSE: SLI) announced that its joint venture with Equinor has attracted expressions of interest from three export‑credit agencies, including the U.S. Export‑Import Bank (EXIM) and Norway’s Eksfin, for more than $1 billion in senior secured project debt. The interest is part of a $1.1 billion debt package that will fund the $1.45 billion capital‑expenditure required to build Phase 1 of the Southwest Arkansas lithium project.
The financing structure combines a covered tranche of export‑credit agency‑backed debt with a direct lending and loan‑guarantee component to a group of commercial banks, and an uncovered tranche of senior secured debt from those banks. The combined interest exceeds the target debt amount, giving Standard Lithium flexibility to negotiate terms and secure the most favorable conditions for the project. The package will support construction of a commercial‑scale Direct Lithium Extraction (DLE) plant that is expected to produce 22,500 tonnes per year of battery‑quality lithium carbonate by 2028.
The project is located in the Smackover Formation of Southwest Arkansas, a region recognized for its high‑grade lithium brine resources. Standard Lithium has already secured a $225 million grant from the U.S. Department of Energy, and the new debt interest further de‑risks the venture for external financiers. Construction is slated to begin in 2026, with first production anticipated in 2028, positioning the company as one of the first domestic producers of lithium carbonate in the United States.
CEO David Park said the strong response demonstrates the availability of capital and underscores the project’s strategic importance, competitiveness, and technological de‑risking. The financing move reduces the company’s reliance on equity, lowers its overall cost of capital, and brings the project closer to a Final Investment Decision. It also signals that the combination of a proven DLE technology, a DOE grant, and a partnership with Equinor is compelling enough to attract major export‑credit agencies.
The interest from U.S. and Norwegian export‑credit agencies reflects confidence in Standard Lithium’s DLE technology and the economics of the Southwest Arkansas project. By securing senior secured debt, the company can advance to the next development phase with reduced equity dilution, strengthening its balance sheet and positioning it to meet the growing demand for battery‑grade lithium in the U.S. supply chain.
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