2 minutes reading time (399 words)

Equinor acquires 45 pc share in Standard Lithium's two lithium projects in US

Source: Equinor

Norwegian energy MNC Equinor recently entered into an agreement with Standard Lithium to acquire a 45 percent stake in two lithium project companies in Southwest Arkansas and East Texas in the United States. The company will support the operator with core competencies such as subsurface and project execution capabilities in lithium extraction. 

Production of lithium from subsurface reservoirs with Direct Lithium Extraction (DLE) technologies is emerging as a production method with a lower environmental footprint than traditional methods. Equinor began testing DLE technologies back in 2018 to develop know-how on scaling-up including pre-treatment of subsurface brines and processing to battery grade lithium chemicals.

"Sustainably produced lithium can be an enabler in the energy transition, and we believe it can become an attractive business. This investment is an option with limited upfront financial commitment. We can utilize core technologies from oil and gas in a complementary partnership to mature these projects towards a possible final investment decision," said Morten Halleraker, senior vice president for New Business and Investments in Technology, Digital and Innovation at Equinor.

As per the agreement, Equinor will compensate Standard Lithium for $30 million in past costs net to the acquired interest and will carry Standard Lithium's capex of $33 million to progress the assets towards a possible final investment decision. 

The company will make payments of up to $70 million in aggregate to Standard Lithium once a final investment decision is arrived. Standard Lithium and Equinor will respectively own 55 percent and 45 percent of the two project companies, with Standard Lithium retaining operatorship. 

The DLE technology involves lithium extraction from saltwater typically from deep underground reservoirs which cannot be used for drinking or agriculture purposes. Lithium is separated from other brine constituents, like sodium, calcium and magnesium, by bringing the brine into contact with a medium designed to selectively attract the lithium. 

The company claims that the DLE produces a high purity lithium concentrate which can be converted into battery grade lithium chemicals using conventional processing technologies. 


IBAT's modular direct lithium extraction technology claims 95 pc recovery rate

International Battery Metals Ltd. has claimed that its modular direct lithium extraction (MDLE) technology delivers a 97 percent extraction rate of lithium from feed brine to lithium chloride. The technology has recently received certification from Greg Mehos & Associates (GM&A), an independent testing agency.
Author : Dhiyanesh Ravichandran
Nel enters technology licensing agreement with Ind...
Theion claims breakthrough in ultra-fast charging,...