Smackover Lithium Signs First Binding Customer Offtake Agreement for the South West Arkansas Project

Rhea-AI Summary

Smackover Lithium (SLI) signed its first binding commercial offtake with Trafigura for the South West Arkansas Project. The JV will supply 8,000 metric tonnes/year of battery-quality lithium carbonate for 10 years, starting at commercial production. This agreement represents over 40% of targeted offtake for the initial phase and is structured to support project financing and an intended Final Investment Decision.

The JV seeks offtakes for roughly 80% of 22,500 tpa nameplate capacity and reported indications of interest for over $1 billion in debt financing.

Positive

• Binding offtake for 8,000 tpa of lithium carbonate over 10 years
• Agreement represents >40% of targeted offtake commitments for initial phase
• Offtake structured to support project financing and advance FID
• Indications of interest for $1 billion+ in project debt financing

Negative

• Pricing terms are confidential, leaving financing pricing transparency limited
• Approximately 60% of initial 22,500 tpa nameplate capacity remains uncommitted

News Market Reaction – SLI

+3.49%

1 alert

+3.49% News Effect

On the day this news was published, SLI gained 3.49%, reflecting a moderate positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

Offtake volume: 8,000 metric tonnes/year Offtake term: 10 years SWA nameplate capacity: 22,500 tonnes/year +3 more

6 metrics

Offtake volume 8,000 metric tonnes/year Battery-quality lithium carbonate under Trafigura offtake agreement

Offtake term 10 years Duration of binding take-or-pay offtake agreement

SWA nameplate capacity 22,500 tonnes/year Initial phase lithium carbonate capacity for SWA Project

Targeted offtake share 80% Portion of 22,500 tpa capacity JV aims to contract via offtakes

First agreement share Over 40% Portion of targeted offtake commitments covered by Trafigura deal

Debt interest Over $1 billion Indications of interest in project debt for SWA financing update

Market Reality Check

Price: $4.45 Vol: Volume 1,450,679 is below...

low vol

$4.45 Last Close

Volume Volume 1,450,679 is below the 20-day average of 2,142,811 (relative volume 0.68). low

Technical Trading above 200-day MA, with price at $4.30 vs 200-day MA of $3.53.

Peers on Argus

Peers show mixed moves: SGML +3.7%, LAC +1.11%, UAMY +8.5%, while CRML -6.08% an...

Peers show mixed moves: SGML +3.7%, LAC +1.11%, UAMY +8.5%, while CRML -6.08% and NEXA -1.54%. This points to stock‑specific reaction to the offtake news.

Historical Context

5 past events · Latest: Dec 09 (Positive)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Dec 09	Project financing update	Positive	+3.0%	Indications of interest for over $1 billion in ECA-backed project debt.
Nov 18	Investor conferences	Neutral	+7.0%	Management participation in multiple late-2025 investor conferences.
Nov 10	Earnings and DFS	Positive	+6.9%	Q3 2025 results plus DFS with detailed SWA costs and capex metrics.
Nov 05	Resource update	Positive	+1.5%	Maiden inferred resource for Franklin Project with high lithium-in-brine grades.
Oct 30	Regulatory approval	Positive	-1.1%	Final integration approval for Reynolds Brine Unit supporting SWA FID.

Pattern Detected

News tied to SWA Project de-risking, resources, and financing has usually seen positive price reactions, with one notable divergence on regulatory approval.

Recent Company History

Over the last several months, Standard Lithium has advanced the South West Arkansas (SWA) Project with key steps such as final integration approval for the Reynolds Brine Unit on Oct 30, 2025 and a maiden inferred resource at Franklin on Nov 5, 2025. Q3 2025 results on Nov 10 detailed DFS economics and an upsized $130M equity raise. On Dec 9, 2025, the JV reported indications of interest for over $1 billion in project debt, setting the stage for today’s first binding offtake agreement.

Market Pulse Summary

This announcement details a binding Trafigura offtake for 8,000 tpa of battery-quality lithium carbo...

Analysis

This announcement details a binding Trafigura offtake for 8,000 tpa of battery-quality lithium carbonate over 10 years, covering over 40% of the JV’s targeted offtake for the SWA Project’s initial 22,500 tpa capacity. It follows prior indications of interest for over $1 billion in project debt. Investors may monitor completion of the remaining offtakes, project financing structure, and timing of the SWA Final Investment Decision.

Key Terms

offtake agreement, take-or-pay, battery-quality lithium carbonate, nameplate lithium carbonate capacity, +2 more

6 terms

offtake agreement financial

"announced the signing of its first commercial offtake agreement for the South West"

A contract in which a buyer commits to purchase a set portion or percentage of a producer’s future output—such as minerals, energy, agricultural goods, or manufactured products—often over a multi‑year period. It matters to investors because it creates predictable sales and cash flow, reduces the risk of unsold inventory, and can make projects easier to finance; think of it like pre‑selling future harvests or securing long‑term customers before production begins.

take-or-pay financial

"Under the terms of this binding take-or-pay offtake agreement (the “Agreement”)"

A take-or-pay clause is a contract term that requires a buyer to either take delivery of an agreed amount of a product or pay a penalty if they do not. For investors, it matters because it creates predictable revenue for the seller—like a subscription fee that must be paid whether fully used or not—reducing sales volatility but also introducing counterparty risk if the buyer’s ability to pay is uncertain.

battery-quality lithium carbonate technical

"supply Trafigura with 8,000 metric tonnes per year of battery-quality lithium carbonate"

Battery-quality lithium carbonate is a high-purity form of lithium used as a raw material to make lithium-ion battery components; think of it like food-grade flour versus ordinary flour — it must meet strict cleanliness and chemical standards to work reliably in batteries. It matters to investors because its availability, purity and cost directly affect battery performance, manufacturing costs and supply chains for electric vehicles and energy storage, influencing the revenues and valuations of miners, refiners and battery makers.

nameplate lithium carbonate capacity technical

"22,500 tonnes of annual nameplate lithium carbonate capacity for the initial phase"

The nameplate lithium carbonate capacity is the maximum amount of lithium carbonate a processing plant is designed to produce, usually stated as tonnes per year, under ideal operating conditions. Investors use it like a factory’s rated top speed: it signals the scale of potential supply and revenue from a facility, but actual output can be lower due to downtime, feed quality or ramp-up issues, so it’s a starting point for valuing projects and forecasting market impact.

Final Investment Decision financial

"preparation for a Final Investment Decision (“FID”) for the SWA Project"

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.

project financing financial

"the SWA Project financing process and is critical to supporting the contemplated debt"

Project financing is a way to fund a single, large project — such as a power plant, toll road, or mine — where lenders and investors look primarily to the project’s future cash flow and assets for repayment rather than the company’s overall balance sheet. It matters to investors because it isolates risk and return: like a mortgage tied to a single house, the project’s performance determines who gets paid and how much, affecting credit risk, expected returns, and how losses are absorbed.

AI-generated analysis. Not financial advice.

All figures are in US dollars unless otherwise stated.

LEWISVILLE, Ark., March 09, 2026 (GLOBE NEWSWIRE) -- Smackover Lithium, a joint venture (“JV”) between Standard Lithium Ltd. (“Standard Lithium” or the “Company”) (TSXV: SLI) (NYSE.A: SLI) and Equinor, through subsidiaries of Equinor ASA, announced the signing of its first commercial offtake agreement for the South West Arkansas Project (“SWA Project” or the “Project”) with Trafigura Trading LLC (“Trafigura”). Trafigura is a market leader in the global commodities industry, with an established presence across battery metals markets including lithium.

Under the terms of this binding take-or-pay offtake agreement (the “Agreement”), the JV will supply Trafigura with 8,000 metric tonnes per year of battery-quality lithium carbonate over a 10-year period, beginning at the start of commercial production. Pricing terms of the Agreement are subject to confidentiality but are structured to support the anticipated financing for the Project.

David Park, Chief Executive Officer of Standard Lithium stated, “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. 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.”

Gonzalo De Olazaval, Head of Metals and Minerals at Trafigura, commented, “We are pleased to have signed this offtake agreement with Smackover Lithium, further strengthening our North American critical minerals footprint. The SWA Project is expected to provide a reliable source of battery-grade lithium carbonate produced in the United States, enhancing domestic supply chains. We look forward to collaborating with Smackover Lithium on this strategic project and delivering this material to customers across North America and globally.”

The JV is seeking to finalize customer offtake agreements for roughly 80% of the 22,500 tonnes of annual nameplate lithium carbonate capacity for the initial phase of the SWA Project. This first Agreement represents over 40% of the targeted offtake commitments. The JV is in advanced commercial negotiations with multiple additional parties with the aim to complete this process as soon as practical.

The offtake process is being run in conjunction with the SWA Project financing process and is critical to supporting the contemplated debt size, duration and structure. The JV plans to announce additional customer offtake agreements as they are finalized, in preparation for a Final Investment Decision (“FID”) for the SWA Project and the close of Project financing. The JV provided a financing update on December 9^th, 2025 highlighting indications of interest for over $1 billion in debt.

Standard Lithium intends to provide an update on customer offtakes and FID plans for the Project with its upcoming fourth quarter 2025 earnings release and conference call, with details to be made available on the Company website and via future press release.

About Smackover Lithium

Smackover Lithium is a branded identity of jointly held projects between Standard Lithium and Equinor, through subsidiaries of Equinor ASA. 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, 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 relationship 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.

About Trafigura

Trafigura is a leading commodities group, owned by its employees and founded over 30 years ago. At the heart of global supply, Trafigura connects vital resources to power and build the world. We deploy infrastructure, market expertise and our worldwide logistics network to move oil and petroleum products, metals and minerals, gas and power from where they are produced to where they are needed, forming strong relationships that make supply chains more efficient, secure and sustainable. We invest in renewable energy projects and technologies to facilitate the transition to a low-carbon economy, including through MorGen Energy and joint venture Nala Renewables.

The Trafigura Group also comprises industrial assets and operating businesses including multi-metals producer Nyrstar, fuel storage and distribution company Puma Energy, the Impala Terminals joint venture and Greenergy, supplier and distributor of transportation fuels and biofuels. The Group employs approximately 14,500 people, of which over 1,400 are shareholders, and operates in over 150 countries.

Visit: www.trafigura.com

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 the SWA Project, the Agreement’s ability to move the Project towards FID, the

expectation that the Project will provide a reliable source of battery-grade lithium carbonate in

the United States, the expectation and timing of finalizing additional offtake agreements, including the anticipated quantity of such offtake agreements, the anticipated pricing and take-or-pay structure of future offtake agreements, the ability of the JV to supply 8,000 metric tonnes per year of battery-quality lithium carbonate, the ability to secure debt financing on terms and timelines acceptable to the Company, 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

What did Smackover Lithium (SLI) announce on March 9, 2026 about Trafigura offtake?

They announced a binding take-or-pay offtake with Trafigura for 8,000 tpa of lithium carbonate over 10 years. According to the company, the supply begins at commercial production and supports project financing and FID plans.

How much of the SWA Project capacity does the Trafigura deal cover for SLI (South West Arkansas Project)?

The agreement represents over 40% of targeted offtake commitments for the initial phase. According to the company, the JV is targeting offtakes for roughly 80% of 22,500 tpa nameplate capacity.

Will the Trafigura offtake help SLI secure project financing for the SWA Project?

Yes. The offtake is structured to support anticipated project financing and FID by underpinning debt size and duration. According to the company, it is being run in conjunction with the financing process.

What financing progress did Smackover Lithium report related to the SWA Project as of March 9, 2026?

The JV reported indications of interest for over $1 billion in debt financing. According to the company, those indications are part of ongoing efforts to close project financing ahead of FID.

When will Standard Lithium (SLI) provide further updates on SWA customer offtakes and FID plans?

Standard Lithium plans to update investors with its Q4 2025 earnings release and conference call. According to the company, further details will be posted on the company website and via future press releases.