Standard Lithium Teams Up with BNP Paribas for Debt Financing of Lithium Plant

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Standard Lithium, a Canadian company, has announced its partnership with BNP Paribas, based in Paris, as its exclusive financial advisor for securing debt financing for its upcoming lithium production plant. The Lanxess 1A project, situated near El Dorado, Arkansas, aims to refine lithium extracted from underground brine found in the Smackover geological formation.

For the past two years, Standard Lithium has been operating modular test plants in El Dorado, producing limited quantities of lithium products using the brine wells and pipeline infrastructure previously used by Lanxess AG. The collaboration with BNP Paribas is expected to facilitate limited-recourse debt financing to cover a significant portion of the Lanxess 1A project's costs.

BNP Paribas is renowned as a global leader in financial advisory and project financing for battery and critical mineral projects. Standard Lithium expressed its enthusiasm for partnering with BNP Paribas, highlighting the company's expertise in securing debt financing for sustainable projects within the battery and critical minerals sector.

Andy Robinson, the President of Standard Lithium, emphasized the company's focus on the Definitive Feasibility Study (DFS) for the Lanxess 1A project, which marks an important step towards commercialization. Robinson expressed confidence in BNP Paribas' ability to secure project financing and looks forward to commencing construction next year.

BNP Paribas Director Antonio Pichardo hailed the debt financing agreement as a landmark achievement, emphasizing the commitment to environmental protection and meeting the growing demand for lithium. The partnership aims to establish Standard Lithium as a prominent producer of responsible lithium for the burgeoning electric vehicle market.

BNP Paribas, operating in 65 countries and employing nearly 185,000 individuals, is recognized as the leading bank in the European Union and a significant player in international banking. Its involvement in this project underscores its commitment to climate action and supporting clients in navigating future challenges.

In addition to the collaboration with BNP Paribas, Standard Lithium recently signed a joint development agreement with Koch Technology Solutions, an affiliate of Koch Engineered Solutions. This partnership aims to share data and collectively develop lithium brine processing flow sheets, further bolstering Standard Lithium's presence in the region. Koch Technology Solutions will also provide performance guarantees and deploy technology for optimal commercial extraction of lithium.

The partnership with BNP Paribas and the collaboration with Koch Technology Solutions highlight Standard Lithium's strategic efforts to solidify its position in the lithium production industry and cater to the growing demand for sustainable lithium products in the electric vehicle market.

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