Standard Lithium signs lithium project MoU with Lanxess
Canada’s Standard Lithium Ltd has signed a memorandum of understanding (MoU) with global specialty chemical company Lanxess Corp to commercially produce battery grade lithium in Arkansas in the United States.
The goal of the agreement, which may lead to a joint venture, is to develop commercial opportunities related to the production, marketing and sale of battery grade lithium products.
The project is located in El Dorado, where Standard Lithium already has over 150,000 acres of permitted brine operations named the Smackover Formation.
Germany-based Lanxess operates three plants for the production of bromine products in El Dorado. The bromine is extracted from the brine produced at the site, which also contains lithium.
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.
For its part, 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.
The technical and economic feasibility of the project is under examination.
Prices for lithium, a key metal used in the production of batteries, soared amid a demand shock while the drive to electrify transportation gathered pace. But fresh production from a plethora of new projects has since halted the gains, with prices having slipped lower in recent months.
Fastmarkets assessed the battery-grade lithium carbonate price at $13-15 per kg, on a delivered duty-paid basis to Europe and the United States on Thursday November 8, unmoved from last week.
All lithium carbonate, lithium hydroxide and lithium spodumene prices are available in our Battery Raw Materials Market Tracker. Get a sample report here.