Standard Lithium Ltd. (Vancouver, B.C., Canada; www.standardlithium.com) has signed a term sheet with Lanxess AG (Leverkusen, Germany; www.lanxess.com) for a contemplated JV 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 as per terms of a binding memorandum of understanding, to develop commercial opportunities related to the production, marketing and sale of battery grade lithium products extracted from brine produced from the Smackover Formation.
Under the proposed terms of the JV, Lanxess would contribute lithium extraction rights and grant access to its existing infrastructure to the JV, and Standard Lithium would contribute existing rights and leases held in the Smackover Formation and the pilot plant being developed on the 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 JV to allow for commercial development of the future commercial project, and it is anticipated that the JV will include options for Standard Lithium to participate in project funding on similar terms. The final terms of the JV and any funding arrangement remain subject to completion of due diligence, technical proof of concept, normal economic viability studies (for example, preliminary feasibility study and so on) to confirm the technical feasibility and economic viability of the project, and the negotiation of definitive agreements between the parties.
Standard Lithium’s flagship Lanxess Project is located in southern Arkansas, where it is engaged in the testing and proving of the commercial viability of lithium extraction from over 150,000 acres of permitted brine operations utilizing the Standard Lithium’s proprietary selective extraction technology (for more details, see Chem. Eng., July 2018; www.chemengonline.com/extracting-lithium-waste-brine-without-ponds). Standard Lithium is also pursuing the resource development of over 30,000 acres of separate brine leases located in southwestern Arkansas and approximately 45,000 acres of mineral leases located in the Mojave Desert in San Bernardino County, California.