1. Smackover Lithium received over $1 billion in project financing interest. 2. The financing will support the $1.45 billion South West Arkansas Project. 3. Expressions of interest validate project’s competitive importance and investment appeal. 4. CEO notes strong capital availability for the first lithium project in the area. 5. Final Investment Decision timing is crucial for project progression.
FAQ
Why Bullish?
The strong interest from ECAs signifies robust financial backing, enhancing SLI's market perception. Historical examples indicate that significant financing commitments usually support stock price gains.
How important is it?
The financing update is pivotal as it highlights SLI's ability to secure money for operations, impacting investor confidence multiplier.
Why Short Term?
Immediate market reactions to financing news may reflect on SLI's stock. Preliminary interest drives anticipation but requires firm commitments for sustained impact.
Smackover Lithium Secures Over $1 Billion in Project Financing Interest for the SWA Project
LEWISVILLE, Ark., Dec. 09, 2025 – Smackover Lithium, a joint venture between Standard Lithium Ltd. (TSXV: SLI, NYSE.A: SLI) and Equinor, has announced significant progress in securing financing for the South West Arkansas Project (SWA Project). The company has received expressions of interest exceeding $1 billion from three major Export Credit Agencies (ECAs), including the Export-Import Bank of the United States (EXIM) and Export Finance Norway (Eksfin). This funding aims to support the construction of Phase 1 of the SWA Project.
Project Debt Structure and Financing Details
Smackover Lithium is pursuing a senior secured, limited recourse debt financing package totaling up to $1.1 billion, referred to as the “Project Debt.” This financing will comprise:
- The ECA Financing package, which includes direct lending and ECA loan guarantees to commercial banks.
- An uncovered tranche of senior secured project debt from these banks.
Earlier this year, Smackover Lithium conducted a market analysis among global banks active in project financing, resulting in multiple expressions of interest for both covered and uncovered tranches. The indicative terms received matched the expectations of the joint venture, confirming assumptions about costs and conditions typical for such project debt facilities.
Capital Expenditure and Financing Utilization
The Project Debt will facilitate the financing of total estimated capital expenditures (CAPEX) of $1.45 billion for the SWA Project. This total is based on results from the joint venture’s Front-End Engineering Design (FEED) and Definitive Feasibility Study. Any costs associated with overrun facilities and reserve accounts, which are customary in project finances, will be negotiated with lenders.
Leadership Insights on Project Financing
David Park, Chief Executive Officer of Standard Lithium, noted, “We have seen a very strong level of interest and engagement from export credit agencies and commercial lenders. This response highlights the project’s strategic importance and reinforces our position as a potential leader in sustainable lithium production in the U.S.”
Allison Kennedy Thurmond, VP for US Lithium at Equinor, emphasized the necessity of securing a comprehensive financing package, stating, “This is critical for advancing the SWA Project into construction, and we are working diligently towards finalizing investment decisions.”
Next Steps and Project Financing Overview
Although Smackover Lithium has received expressions of interest from the ECAs and commercial banks, these are not binding commitments and are subject to customary due diligence, credit approvals, and negotiation of definitive agreements. Further updates regarding financing efforts and the dual-track customer offtake process will be shared as the project progresses.
The $1.45 billion CAPEX was highlighted in the Definitive Feasibility Study released on September 3, 2025. Additionally, the SWA Project was awarded a $225 million grant from the U.S. Department of Energy’s Office of Manufacturing and Energy Supply Chains in January 2025. Remaining CAPEX is projected to be financed through Project Debt and equity contributions from both Standard Lithium and Equinor.
About Smackover Lithium and Strategic Partnerships
Smackover Lithium aims to develop multiple direct lithium extraction (DLE) projects in Southwest Arkansas and East Texas. Standard Lithium holds a 55% interest, with Equinor owning 45%. Standard Lithium leads the operations, focusing on sustainable project development.
Standard Lithium is recognized for its commitment to efficiently developing high-grade lithium-brine properties in the U.S., with projects designed to achieve commercial-scale production. Equinor shares a parallel commitment to low-carbon solutions and sustainable energy development, positioning both companies at the forefront of the lithium market.