Smackover Lithium JV Secures 8,000 tpa Offtake, Covers 40% of Initial Capacity
Standard Lithium and Equinor’s JV signed a binding take-or-pay offtake with Trafigura for 8,000 tonnes/year of battery-grade lithium carbonate over ten years for the SWA Project. This covers over 40% of the 22,500 tpa first-phase capacity and bolsters project financing by underpinning debt structure ahead of final investment decision.
1. Offtake Agreement Details
The joint venture between Standard Lithium and Equinor has executed its first binding take-or-pay offtake agreement with Trafigura. Under the ten-year contract, the JV will deliver 8,000 metric tonnes per year of battery-grade lithium carbonate starting at commercial production.
2. Capacity Commitments
This initial agreement secures over 40% of the SWA Project’s 22,500 tonnes per annum first-phase capacity. The JV is targeting offtake commitments for approximately 80% of nameplate capacity and is in advanced negotiations with additional parties.
3. Financing and FID Plans
The offtake supports the SWA Project financing by underpinning debt sizing, duration, and structure ahead of a final investment decision. Indications of interest exceeding $1 billion in debt have been received, with further offtake agreements expected before FID.