Oil giant Equinor has entered into an agreement with Standard Lithium to buy 45 percent of two lithium project companies in Arkansas and Texas, according to the company’s website.
– Sustainably produced lithium can contribute to the energy transition, and we believe this can become a profitable business, says Morten Halleraker, director of New Business and Investments in the Technology, Digital and Innovation business area at Equinor.
- Lithium is an essential mineral in the energy transition and is needed to meet the expected increased demand for batteries for electric vehicles and energy storage.
- Production of lithium from underground reservoirs with Direct Lithium Extraction (DLE) technologies can overall have a lower environmental footprint than traditional extraction methods.
Source: Equinor
The agreement states that Equinor will pay Standard Lithium 30 million dollars – 330 million kroner – for previous costs and contribute 33 million dollars – 360 million kroner – in capital expenditure to mature the projects towards a possible final investment decision.
Equinor will also pay up to USD 70 million – NOK 770 million – accumulated to Standard Lithium if a final investment decision is made.
Standard Lithium and Equinor will own 55 per cent and 45 per cent respectively in the two project companies, where Standard Lithium is the operator. Equinor will support the operator with underground technology and experience from project implementation.
Tags: Equinor invests billion battery investment
