Hogan Lovells represents Equinor in investment in Standard Lithium Ltd.

International energy company Equinor has entered into an agreement with Standard Lithium Ltd., a leading near-commercial lithium development company, to acquire a 45% share in two lithium project companies in Southwest Arkansas and East Texas.

“Sustainably produced lithium can be an enabler in the energy transition, and we believe it can become an attractive business. This investment is an option with limited upfront financial commitment. We can utilize core technologies from oil and gas in a complementary partnership to mature these projects towards a possible final investment decision,” says Morten Halleraker, senior vice president for New Business and Investments in Technology, Digital and Innovation at Equinor.

Under the terms of the agreement, Equinor will compensate Standard Lithium for US$30 million in past costs net to the acquired interest and will carry Standard Lithium's capex of US$33 million to progress the assets towards a possible final investment decision. Equinor will make milestone payments of up to US$70 million in aggregate to Standard Lithium if a final investment decision is taken.

The Hogan Lovells team that represented Equinor was led by partners Megan Ridley-Kaye (New York), and Dave Locascio (Houston), and included visiting international lawyer Fredrik Gunhildrud (New York), and associates Mariana Avendano and Swati Parashar (both Houston).

More about this transaction is here.