Trafigura signs 10-year take-or-pay for 80,000 t battery-grade lithium carbonate from Smackover Lithium
- Trafigura signed a binding take-or-pay offtake to purchase 8,000 metric tonnes per year for 10 years, totalling 80,000 tonnes of battery-grade lithium carbonate.
- Deliveries commence at the start of commercial production.
- The SWA Project targets initial production of 22,500 tonnes per annum of battery-quality lithium carbonate, with potential to expand.
- Smackover Lithium (a Standard Lithium and Equinor joint venture) expects Final Investment Decision in 2026 and first production in 2028, using direct lithium extraction from Smackover Formation brines in southern Arkansas.
Deal
Trafigura has signed a binding take-or-pay offtake agreement with Smackover Lithium — a joint venture between Standard Lithium Ltd and Equinor conducted through subsidiaries of Equinor ASA — to purchase battery-grade lithium carbonate from the South West Arkansas Project (SWA Project).
Volumes and timing
Under the agreement Trafigura will buy 8,000 metric tonnes per year for 10 years, equivalent to 80,000 tonnes, with deliveries beginning at the start of commercial production. The SWA Project is targeting initial production of 22,500 tonnes per annum and Smackover Lithium expects to achieve Final Investment Decision during 2026, with first production anticipated in 2028.
Project and technology
The SWA Project will produce battery-quality lithium carbonate from brine resources in the Smackover Formation in southern Arkansas using direct lithium extraction technology. The project’s initial capacity carries scope for further expansion.
Source: trafigura.com