Smackover Lithium Receives Indications of Interest for Over $1 Billion in Project Finance for the SWA Project

Smackover Lithium (SLI) said it has received expressions of interest from three major export credit agencies, including EXIM and Eksfin, for over $1 billion in senior secured ECA-backed project debt to fund Phase 1 of the South West Arkansas (SWA) Project.

Rhea-AI Summary

Smackover Lithium (SLI) said it has received expressions of interest from three major export credit agencies, including EXIM and Eksfin, for over $1 billion in senior secured ECA-backed project debt to fund Phase 1 of the South West Arkansas (SWA) Project. The JV is seeking up to $1.1 billion in senior secured limited‑recourse Project Debt to support total estimated CAPEX of $1.45 billion (FEED/DFS basis), net of a $225 million DOE grant. Responses from commercial banks plus ECA interest exceed the targeted debt, but all indications remain non-binding and subject to due diligence, credit approvals and definitive documentation.

Positive

• Expressions of interest from three ECAs including EXIM and Eksfin
• ECA interest totaling over $1 billion for senior secured debt
• Targeted $1.1 billion Project Debt to fund Phase 1
• $225 million DOE grant awarded to the SWA Project
• $1.45 billion total CAPEX supported by FEED and DFS

Negative

• All ECA and bank indications are non‑binding and conditional
• Remaining CAPEX requires pro rata equity contributions from JV partners
• Cost‑overrun facilities and reserve accounts remain subject to negotiation

Argus Dec 9 session

+2.97% close to close 0.9x rel. volume Open Argus

Details

News Market Reaction – SLI

On Dec 9, the day this news came out, SLI closed 2.97% above the previous close.

Data tracked by StockTitan Argus for the Dec 9 session.

Key Figures

ECA financing interest: Over $1 billion Target project debt: Up to $1.1 billion Total SWA CAPEX: $1.45 billion +3 more

ECA financing interest

Over $1 billion

Indications of interest in senior secured project debt for SWA Phase 1

Target project debt

Up to $1.1 billion

Planned senior secured, limited recourse debt package for SWA Project

Total SWA CAPEX

$1.45 billion

Estimated capital expenditures from FEED and Definitive Feasibility Study

DOE grant

$225 million

Grant from U.S. Department of Energy for SWA Project in January 2025

Project equity funding

Pro rata equity

Remaining CAPEX to be funded by Standard Lithium and Equinor equity

DOE award number

DE-MS-0000099

Award reference for DOE support of SWA-related work

Historical Context

5 past events · Latest: Nov 18

5 events

1. Nov 18

   Investor conferences

   24h Move

   +7.0%

   Management highlighted upcoming conference appearances and investor engagement initiatives.

2. Nov 10

   Earnings and DFS

   24h Move

   +6.9%

   Q3 results plus DFS showing economics and capex for the SWA Project.

3. Nov 05

   Resource update

   24h Move

   +1.5%

   Maiden inferred resource at Franklin with high lithium-in-brine grades reported.

4. Oct 30

   Regulatory approval

   24h Move

   +0.5%

   Final integration approval for Reynolds Brine Unit supporting SWA Project de-risking.

5. Oct 20

   Equity offering

   24h Move

   +0.2%

   $130M underwritten equity raise to fund SWA and Franklin project capex.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

export credit agencies, senior secured project debt, limited recourse debt financing, front-end engineering design, +4 more

8 terms

export credit agencies financial

"expressions of interest from three major Export Credit Agencies (“ECAs”)"

Export credit agencies are government-backed institutions that provide loans, guarantees or insurance to help domestic companies sell goods and services abroad. Think of them as a government co-signer or insurer that reduces the risk of nonpayment or political trouble in foreign markets; for investors, their support can make large cross-border deals more likely, lower financing costs, and change a company’s export revenue and credit risk profile.

senior secured project debt financial

"over $1 billion in senior secured project debt (the “ECA Financing”)"

Debt used to finance a specific project where lenders have the first claim on that project's cash flows and assets if something goes wrong; it sits ahead of other claims in the payment order and is backed by collateral tied to the project. Think of it like a mortgage on a single building: because lenders can seize the project if payments stop, this debt usually carries lower risk for lenders and affects potential returns, risk profile, and financing flexibility for equity investors.

limited recourse debt financing financial

"seeking a senior secured, limited recourse debt financing package of up to $1.1 billion"

A financing arrangement where the lender’s recovery if the borrower defaults is limited to specific assets or cash flows tied to the deal, not the borrower’s broader balance sheet. Think of it like a loan secured only by a single car: if payments stop, the lender can take that car but cannot reach the borrower’s other belongings. For investors, this reduces the borrower’s overall risk exposure but raises credit risk for the lender and can affect valuations, interest rates and potential losses tied to that asset or project.

front-end engineering design technical

"based on the results of the JV’s Front-End Engineering Design (FEED)"

Front-end engineering design is the early, detailed planning phase of a capital project when engineers create the core blueprints, scope, and cost and schedule estimates that guide construction and procurement. For investors, it matters because a thorough front-end design reduces uncertainty about total costs, timing, and technical risks—similar to having a detailed house plan and budget before breaking ground—so it helps assess whether a project is likely to stay on time and on budget.

definitive feasibility study technical

"and Definitive Feasibility Study, as well as financing costs"

A definitive feasibility study is a detailed, near-final assessment that shows whether a proposed project—often a mine, infrastructure or major industrial venture—can be built and operated profitably. It combines precise engineering plans, realistic cost estimates, production schedules and risk analysis to give lenders and investors a clear picture of expected returns and potential pitfalls, like a full blueprint and budget that helps decide whether to greenlight financing and construction.

final investment decision financial

"pushing to reach a Final Investment Decision as soon as practical"

A final investment decision is the point at which a person or organization chooses to move forward with a particular project or purchase after reviewing all the necessary information and options. It is like deciding to buy a house after considering all the costs, benefits, and alternatives. This decision is important because it determines whether and when the investment will be made, impacting future financial plans and outcomes.

offtake process financial

"including the dual-track customer offtake process that is critical to supporting"

The offtake process is the set of steps by which a producer secures and manages agreements for future sale and delivery of its goods or output, such as commodities, energy, or manufactured products. For investors it matters because these contracts act like pre-sold revenue: they reduce the risk of unsold supply, help a project obtain financing, and make future cash flows more predictable—similar to a farmer locking in buyers before planting a crop.

project finance financial

"update with respect to the project financing being pursued for the South West Arkansas Project"

Project finance is a way to fund a single, large undertaking — like a power plant or toll road — where lenders are repaid mainly from the project’s own future cash flows and the project is run through a separate company to keep its money and risks separate. For investors, this structure concentrates risk and reward around that specific asset, so returns and credit exposure depend more on the project’s success than on its sponsors, making careful assessment of cash flow forecasts and contracts crucial.

AI-generated analysis. How Rhea-AI works. Not financial advice.

See more from StockTitan in Google Search and AI answers. Adds StockTitan as a preferred source · opens Google

Add on Google Not now

All figures are in US dollars unless otherwise stated.

LEWISVILLE, Ark., Dec. 09, 2025 (GLOBE NEWSWIRE) -- Smackover Lithium, a Joint Venture (“JV”) between Standard Lithium Ltd. (“Standard Lithium” or the “Company”) (TSXV: SLI) (NYSE.A: SLI) and Equinor, is providing an update with respect to the project financing being pursued for the South West Arkansas Project (“SWA Project” or the “Project”). Smackover Lithium has received expressions of interest from three major Export Credit Agencies (“ECAs”), including among them Export-Import Bank of the United States (EXIM) and Export Finance Norway (Eksfin), for over $1 billion in senior secured project debt (the “ECA Financing”) to fund the construction of Phase 1 of the SWA Project.  

Smackover Lithium is currently seeking a senior secured, limited recourse debt financing package of up to $1.1 billion in total (the “Project Debt”). The Project Debt is expected to be comprised of i) the ECA Financing package, which includes direct lending and the provision of ECA loan guarantees to a group of commercial banks (the covered tranche) that together account for a substantial portion of the total debt, and ii) an uncovered tranche of senior secured project debt from the commercial banks.

Earlier this year, Smackover Lithium conducted a market sounding of global commercial banks that are active in the project financing debt market and received multiple expressions of interest for both the covered tranche under the ECA Financing and the uncovered tranche. The responses included indicative terms that were consistent with the expectations of the JV and validated certain assumptions regarding the cost, term, structure and conditions that are customary for project debt facilities of this nature.   The combined commercial bank interest, together with the ECA Financing, exceed the targeted Project Debt.

The Project Debt will be used to fund total estimated capital expenditures of $1.45 billion for the SWA Project based on the results of the JV’s Front-End Engineering Design (FEED) and Definitive Feasibility Study, as well as financing costs. Any cost overrun facilities and reserve accounts, typical for project financings of this nature, remain subject to negotiation with the lenders.

David Park, Chief Executive Officer of Standard Lithium stated, “We have seen a very strong level of interest and engagement from export credit agencies and commercial lenders that are keen to partner with us in the development of the first lithium project in the Smackover. Expressions of interest have been at competitive indicative terms and exceed our targeted debt amount for the SWA Project. This strong response demonstrates the availability of capital and underscores the Project’s strategic importance, competitiveness and technological de-risking. We are well-positioned to be a regional champion, delivering a low-cost and sustainable source of lithium production in the United States.”

"Securing an attractive and comprehensive project financing package is a critical component of moving the SWA Project into construction," said Allison Kennedy Thurmond, VP for US Lithium at Equinor. “We continue to make meaningful progress on this important workstream and are pushing to reach a Final Investment Decision as soon as practical.”

None of the expressions of interest received to date from the ECAs or the commercial banks are commitments to finance the SWA Project and remain subject to customary due diligence that is in progress, credit and other approvals, the satisfactory negotiation of definitive documentation and other conditions precedent to financial close and drawdown.

Further updates on these efforts, including the dual-track customer offtake process that is critical to supporting this financing structure, will be provided as progress continues.

Project Financing Overview

The $1.45 billion in total capital expenditures (“CAPEX”) for the SWA Project was highlighted in the DFS news release dated 3^rd September 2025. 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 of 2025. Remaining CAPEX is expected to be financed by Project Debt of up to $1.1 billion and pro rata equity contributions from Standard Lithium and Equinor.

Department of Energy Acknowledgement and Disclaimer

This material is based upon work supported by the U.S. Department of Energy's Office of Manufacturing Energy and Supply Chains under award Number DE-MS-0000099. The views expressed herein do not necessarily represent the views of the U.S. Department of Energy or the United States Government.

About Smackover Lithium

Smackover Lithium is a joint venture between Standard Lithium and Equinor. Formed in May 2024, Smackover Lithium is developing multiple direct lithium extraction (“DLE”) projects in Southwest Arkansas and East Texas (the “JV Projects”). Standard Lithium owns a 55% interest and Equinor holds the remaining 45% interest in the JV Projects, with Standard Lithium maintaining operatorship.

About Standard Lithium Ltd.

Standard Lithium is a leading near-commercial lithium development company focused on the sustainable development of a portfolio of large, high-grade lithium-brine properties in the United States. The Company prioritizes projects characterized by high-grade resources, robust infrastructure, skilled labor, and streamlined permitting. Standard Lithium aims to achieve sustainable, commercial-scale lithium production via the application of a scalable and fully integrated DLE and purification process. The Company’s flagship projects are in the Smackover Formation, a world-class lithium brine asset, focused in Arkansas and Texas. In partnership with global energy leader Equinor, Standard Lithium is advancing the SWA Project, a greenfield project located in southern Arkansas, and actively advancing a promising lithium brine resource position in East Texas, including the highest known lithium brine grade project in North America, the Franklin Project.

Standard Lithium trades on both the TSX Venture Exchange (“TSXV”) and the NYSE American under the symbol “SLI”. Visit the Company’s website at www.standardlithium.com for more information.

About Equinor

Equinor is an international energy company committed to long-term value creation in a low-carbon future. Equinor’s portfolio of projects encompasses oil and gas, renewables, and low-carbon solutions, with an ambition of becoming a net-zero energy company by 2050. Headquartered in Norway, Equinor is the leading operator on the Norwegian continental shelf and has offices in more than 20 countries worldwide. Equinor’s partnership with Standard Lithium to mature DLE projects builds on its broad US energy portfolio of oil and gas, offshore wind, low carbon solutions, and battery storage projects.

For more information on Equinor in the US, please visit: Equinor in the US - Equinor.

Investor Inquiries
Daniel Rosen
+1 604 409 8154
investors@standardlithium.com

Media Inquiries

media@standardlithium.com

Neither the TSXV nor its Regulation Services Provider (as that term is defined in policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release.

This news release may contain certain “Forward-Looking Statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995 and applicable Canadian securities laws. When used in this news release, the words “anticipate”, “believe”, “estimate”, “expect”, “target, “plan”, “forecast”, “may”, “could”, “should”, “schedule”, “predict”, “budget”, “project”, “potential” and other similar words or expressions identify forward-looking statements or information. These forward-looking statements or information may relate to the timing of any development of SWA, the ability to monetize the ECA Financing or any ECAs expressions of interest, the availability of commercial bank interest, the size of the Project Debt, regulatory or government requirements or approvals and other factors or information. Such statements represent the Company’s current views with respect to future events and are necessarily based upon a number of assumptions and estimates that, while considered reasonable by the Company, are inherently subject to significant business, economic, competitive, political and social risks, contingencies and uncertainties. Many factors, both known and unknown, could cause results, performance or achievements to be materially different from the results, performance or achievements that are or may be expressed or implied by such forward-looking statements. The Company does not intend, and does not assume any obligation, to update these forward-looking statements or information to reflect changes in assumptions or changes in circumstances or any other events affecting such statements and information other than as required by applicable laws, rules and regulations.

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What project finance interest did Smackover Lithium (SLI) report on December 9, 2025?

Smackover Lithium reported expressions of interest from three ECAs, including EXIM and Eksfin, for over $1 billion in senior secured debt.

How much Project Debt is SLI seeking for the SWA Project and what is its purpose?

The JV is seeking up to $1.1 billion in senior secured limited‑recourse Project Debt to fund Phase 1 construction and financing costs.

What is the total estimated CAPEX for the SWA Project and what funding is already secured?

Total estimated CAPEX is $1.45 billion (FEED/DFS basis) and the project received a $225 million DOE grant.

Do the ECA and bank expressions of interest constitute binding commitments for SLI (SLI)?

No; the expressions of interest are not commitments and remain subject to due diligence, approvals and definitive documents.

Will SLI shareholders need to provide additional equity for the SWA Project?

Remaining CAPEX is expected to be financed by Project Debt and pro rata equity contributions from Standard Lithium and Equinor.