1 week Ago
MF3d Standard Lithium Ltd. ( NYSE: SLI ) announced some rather large news recently. In this article, we are going to explore the partnership with Equinor ( EQNR ) and what it means for SLI from a big picture viewpoint.
Note: If you want a detailed explanation of the Standard Lithium projects, please read our coverage from last month . That explains in great detail all project costs and should be considered "required reading" for those not familiar with Standard Lithium. Acceleration of The Lanxess Project In today's news, SLI landed a partnership with Equinor.
At first glance, I can't say I was overly excited. My initial reaction was more similar to "We are selling off some percent of ownership in two of the three projects and not for chump change but also not an earth-shattering amount. Kind of surprising, given how incredible the lithium grades are in Texas.
" The market seemed to concur; the stock was slightly down. Then I pondered it a few minutes and thought: "What does this bring to the table for SLI? Would I carry out the same actions that they did?" The answer is yes, I would. You see, Standard has a limited amount of capital, and they need to move forward.
Thus, the partnership makes sense. The amount of capital required to fully explore Texas and the South-West Arkansas project is slated to require tens of millions of dollars, along with an unknown tincture of time. The cost to actually develop the projects could be in the low billions.
This partnership provides the .
