- Smackover Lithium—the JV between Standard Lithium (TSXV:SLI) and Equinor—signed its first commercial offtake deal with Trafigura for 8,000 tonnes/year of battery‑grade lithium carbonate over 10 years
- The agreement covers over 40 per cent of the SWA Project’s targeted offtake for its initial 22,500‑tonne annual capacity, with further customer agreements in advanced negotiation
- The offtake milestone supports the JV’s ongoing project financing process, which has drawn over US$1B in debt interest ahead of an upcoming final investment decision
- Standard Lithium stock (TSXV:SLI) last traded at C$6.19
Smackover Lithium, the joint venture between Standard Lithium (TSXV:SLI) and Equinor ASA subsidiaries, has signed its first commercial offtake agreement for the South West Arkansas Project (aka the SWA Project) with global commodities trader Trafigura Trading LLC. The deal marks a significant milestone for the venture as it advances toward project financing and a Final Investment Decision (FID).
Trafigura, a major participant in global energy and metals markets, will purchase 8,000 metric tonnes per year of battery-quality lithium carbonate over a 10‑year term. The binding take‑or‑pay agreement—effective upon the start of commercial production—represents more than 40 per cent of the offtake volumes the JV aims to finalize for the SWA Project’s initial phase.
While pricing terms remain confidential, the companies noted that the structure is designed to support the project’s anticipated financing. The SWA Project’s first phase is targeting an annual nameplate capacity of 22,500 tonnes of lithium carbonate. The JV is currently seeking to secure agreements for roughly 80% of that total.
“The execution of this offtake agreement was the culmination of months of collaboration and negotiation and is a major milestone in moving the SWA Project towards FID and construction,” Standard Lithium’s CEO, David Park, stated in a media release. “We are excited about the opportunity to collaborate with a strong industry leader like Trafigura and look forward to providing them with high quality lithium carbonate to serve growing domestic and global markets in the coming years.”
Smackover Lithium reported that it is in advanced negotiations with multiple additional potential customers, with expectations of announcing further agreements in the near term. The offtake process is being run in parallel with the venture’s financing efforts, which the companies describe as essential to defining project debt size, tenor, and structure. As of a December 9, 2025 update, the JV indicated it had received over US$1 billion in debt financing interest.
Standard Lithium plans to provide more detail on customer commitments and the expected timing of a Final Investment Decision in its upcoming fiscal fourth‑quarter 2025 earnings release and conference call. Additional information will also be shared through the company’s website and future public disclosures.
About Smackover Lithium
Formed in May 2024, Smackover Lithium encompasses a set of jointly held projects in Southwest Arkansas and East Texas that leverage direct lithium extraction technology. Standard Lithium owns a 55% interest in the JV and serves as operator, while Equinor holds the remaining 45 per cent. The partnership is focused on developing multiple brine-based lithium resources across the region, an area increasingly viewed as a potential long-term contributor to North America’s emerging battery materials supply chain.
Based out of Vancouver, Standard Lithium‘s principal operations include exploration for and development of lithium brine properties in the United States.
Shares of Standard Lithium (TSXV:SLI) last traded at C$6.19 and has risen 217 per cent since this time last year.
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