Posted on November 15, 2018
VANCOUVER, BC — Standard Lithium Ltd. has announced that it has signed a term sheet with specialty chemical company Lanxess Corporation.
The document is in anticipation of a joint venture in the commercial production of battery grade lithium from brine extracted from the Smackover Formation in South Arkansas.
Standard Lithium is working with Lanxess in a phased approach in conjunction with an agreement to develop battery grade lithium products extracted from brine produced from the Smackover Formation.
Under the proposed terms of the joint venture, Lanxess would contribute lithium extraction rights and grant access to its existing infrastructure to the joint venture. Standard Lithium would contribute existing rights and leases held in the Smackover Formation (mainly in Columbia and Lafayette counties) and the pilot plant being developed on Lanxess property, as well as its proprietary extraction processes including all relevant intellectual property rights.
Upon proof of concept, Lanxess is prepared to provide funding to the joint venture to allow for the commercial development of the future commercial project, and it is anticipated that the joint venture will include options for Standard Lithium to participate in project funding on similar terms.
The final terms of the joint venture and any funding arrangement remain subject to completion of due diligence, technical proof of concept, normal economic viability studies to confirm the technical feasibility and economic viability of the project, and the negotiation of definitive agreements between the parties.