Standard Lithium shares are trading higher after the company announced the signing of its second commercial offtake agreement for the South West Arkansas Project with LG Energy Solution.

Smackover Lithium Exceeds Targeted Customer Offtake Volumes for South West Arkansas Project

Smackover Lithium amended its binding offtake agreement with Trafigura, adding an optional 4,000 metric tonnes of battery-quality lithium carbonate per year to the initial 8,000 tonne commitment, bringing total possible volumes to 12,000 tonnes annually. Combined with an 8,000 tonne agreement with LG Energy Solution, the project now has 20,000 tonnes of committed offtake, exceeding its 80% capacity target and enabling the company to proceed with finalizing $1.1 billion in debt financing. First commercial production is targeted for 2029.

Shares of rare earth and critical metals-related companies are trading lower as spiking energy costs and expectations for higher interest rates dampen investor interest in the sector. Pricier global borrowing may lead to difficulties funding projects and lower demand from customers.

Smackover Lithium Announces Results Of Preliminary Economic Assessment For Its Franklin Project; Sees Unlevered After-Tax NPV Of $5B And IRR Of 24%

Up to 70,000 tonnes per year of battery-quality lithium carbonate productionCapital intensity of $49.9k per tonne with average annual cash operating cost of $4,226 per tonneUpgraded and upsized Mineral Resource with

Jefferies Initiates Coverage On Standard Lithium with Hold Rating, Announces Price Target of $2.9