Equinor Acquires Stake in Lithium Projects in Arkansas and Texas
Equinor has purchased a 45% stake in two lithium project companies located in Southwest Arkansas and East Texas. The acquisition aligns with Equinor’s utilization of its expertise in oil and gas to advance these lithium projects. Morten Halleraker, Senior Vice President for New Business and Investments in Technology, Digital, and Innovation at Equinor, noted the strategic use of the company's core technologies to potentially scale the projects to final investment stages.
The agreement involves a payment of $30 million by Equinor to Standard Lithium to cover past costs related to the projects. Furthermore, Equinor will assume responsibility for $33 million of future capital expenditures to progress the project development. Additional milestone payments could reach up to $70 million depending on the final investment decision.
Lithium plays a crucial role in the energy sector, especially in electric vehicle production and battery storage systems. The projects use Direct Lithium Extraction (DLE), a method that offers a lower environmental impact compared to traditional extraction techniques. This process involves extracting lithium from subsurface brine reservoirs, which are not suitable for drinking or agricultural use, and reinjecting the depleted brine back into the earth.
Standard Lithium will maintain a majority 55% ownership and operational control of the joint ventures, while Equinor brings its technical expertise to the projects.
