Standard Lithium Secures Major Funding for Arkansas Project

Standard Lithium Ltd. has cleared a pivotal hurdle for its flagship development, with financing commitments exceeding $1 billion now in place for the South West Arkansas Project. This substantial backing, involving a consortium of international export credit agencies, significantly advances the company's ambition to become the inaugural commercial lithium producer within the Smackover Formation.

On December 9, 2025, the Smackover Lithium joint venture—comprising Standard Lithium (55%) and Norwegian energy major Equinor (45%)—disclosed that lender interest has surpassed the targeted financing amount. The venture is seeking up to $1.1 billion in senior secured project debt to fund Phase 1 construction.

The total estimated investment for this initial phase stands at approximately $1.45 billion. The capital structure is supported by multiple sources:

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• A $225 million grant from the U.S. Department of Energy, which was committed in January 2025.
• Direct equity contributions from the two joint venture partners to cover the remaining balance.
• Additional interest from commercial banks, which, combined with the export credit agency support, exceeds the required funding target.

David Park, Standard Lithium's Chief Executive Officer, expressed strong optimism regarding the development. He noted the considerable interest from financial partners and described the proposed terms as competitive, confirming the venture received more commitments than initially required.

Project and Strategic Significance

The development is poised to utilize Direct Lithium Extraction (DLE) technology to recover lithium from brine resources. The site is located in Arkansas's Smackover Formation, a geological region considered one of North America's most prospective lithium brine resources. Successful project execution would position Standard Lithium as the first commercial producer in this specific formation.

The secured financing package, blending public grant support with private debt and equity, represents a critical de-risking event ahead of the formal start of construction. The involvement of export credit agencies, including the U.S. Export-Import Bank and Norway's Eksfin, underscores the project's strategic profile. Attention will now turn to finalizing the detailed structuring of this financing in the coming months.