Standard Lithium said Monday that its Smackover Lithium joint venture has amended its binding offtake agreement with Trafigura, giving the project the option to supply up to 12,000 metric tonnes of battery-quality lithium carbonate per year. The amendment adds as much as 4,000 tonnes annually to Trafigura’s existing 8,000-tonne commitment and brings the project’s total possible offtake commitments to 20,000 tonnes a year.
The amendment applies to the 10-year agreement beginning when commercial production starts. The additional 4,000 tonnes are available at Smackover Lithium’s election rather than being an unconditional increase in Trafigura’s purchase obligation. The company said pricing and other key commercial terms remain confidential, while the structure gives the project flexibility to allocate the additional volume to another customer if a more attractive commercial or strategic opportunity emerges.
The change follows Smackover Lithium’s binding take-or-pay agreement with LG Energy Solution announced in August. That agreement covers 8,000 metric tonnes of lithium carbonate annually for 10 years after commercial production begins. Combined with Trafigura’s original 8,000-tonne commitment, the LG agreement had already brought the project to roughly 90% of its targeted offtake volume. US energy markets have also remained a focus for investors as the company advances its U.S.-based project, although the lithium development is separate from gasoline-market conditions.
The South West Arkansas project has an initial annual nameplate capacity of 22,500 metric tonnes of lithium carbonate. Smackover Lithium had targeted customer commitments covering roughly 80%, or 18,000 tonnes, of that capacity. The company said the amended Trafigura agreement means total possible customer commitments now reach 20,000 tonnes annually, exceeding that original target.
The additional contracted volume is significant to the project’s financing process. Standard Lithium said the partnership now has sufficient offtake commitments to focus on finalizing project debt financing, with due diligence and other customary processes underway with three major export credit agencies. The company is targeting a senior secured, limited-recourse debt package of about $1.1 billion, based on a financing update issued in December 2025.
Standard Lithium owns 55% of Smackover Lithium, while Equinor owns the remaining 45%. The partnership is developing the South West Arkansas project using direct lithium extraction technology and is targeting a final investment decision later this year. If that schedule is achieved, construction is expected to follow, with first commercial production targeted for 2029.
The latest agreement does not mean the project’s debt financing has been completed. Standard Lithium described the financing process as ongoing and its $1.1 billion debt figure as a target. The company also identified final investment approval, financing completion and other project-development requirements as subject to risks and uncertainties.
