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Updates on the Commercial Progress of LANXESS’s Phase 1A Project

Leading near-commercial lithium development company Standard Lithium Ltd has shared an update on the Phase 1A Project's commercial progress at LANXESS’ South Plant, located near El Dorado, Arkansas. The company has contracted Citi to advance its East Texas efforts, the larger South West Arkansas project, and strategic finance and partnering alternatives for the Phase 1A Project.

Image Credit: Morakot Kawinchan/Shutterstock.com

LANXESS Corporation has announced its intentions to market its participation in the Phase 1A Project alongside Standard Lithium, in keeping with its strategy emphasis on core activities. A lease for the production facility site, a brine supply and disposal agreement, and the provision of certain infrastructure services are all part of the cooperative framework.

Negotiations are still in progress on specifics of the future collaboration. The operational framework for the Phase 1A Project will be based on these agreements.

Now that the ownership and operational structure of the Phase 1A Project has been established, Standard Lithium is in a good position to maximize project alliances and draft off-take agreements that maximize the project’s potential value.

With this clarity, the company is now able to expedite project development and carry out its plan to fully use its Smackover resources. Citi is providing strategic finance and partnerships, and BNP Paribas is handling debt financing and off-take negotiations.

Standard Lithium is in an excellent position to optimize project partnerships and design off-take agreements that optimize the project’s potential value now that the ownership and operational structure of the Phase 1A Project has been established.

Now that this is clear, the company can move more quickly on projects and execute its strategy to make the most use of its Smackover resources. BNP Paribas is in charge of debt financing and off-take agreements, while Citi is in charge of strategic alliances and financing.

This prospect utilizes the Direct Lithium Extraction (DLE) method, which has been validated and is scalable, specifically designed for the Smackover Formation. This DLE technology, which took three and a half years to develop and was tested at the South Plant, is presently the only DLE process in the industry prepared for commercial scale. It is made to be replicable throughout the company’s Smackover projects.

The company’s recently released Definitive Feasibility Study (DFS) contains specifics on the Phase 1A Project. The DFS projects that in 2026, direct lithium extraction from Smackover brine—currently generated by LANXESS from their South Brine Unit—will result in the first production of battery-quality lithium carbonate.

With a minimum operational life of 25 years and a peak annual output of 5,700 tpa, the DFS predicts an average yearly production of 5,400 tpa during operation. Up to 40 years of operations are supported by proven and probable reserves totaling 208 kt lithium carbonate equivalent (LCE), with an average concentration of 217 mg/L during the mine’s life.

Source: https://www.standardlithium.com/

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