LANXESS and Standard Lithium have signed an agreement on how to proceed with their lithium project. After 20 months of test operation in a pilot plant, Standard Lithium will now carry out a “Front End Engineering Design (FEED)” study in a next step. With this, the company wants to evaluate the possible construction of an initial industrial plant for the production of lithium carbonate at the LANXESS site in El Dorado, Arkansas/USA. The focus of the FEED study is on the economics and technical feasibility of producing lithium carbonate on an industrial scale. Final results of this study are expected in the fourth quarter of 2022.
If the FEED study is successful, Standard Lithium could set up a plant for the production of battery-grade lithium carbonate at one of the three LANXESS plants in El Dorado at its own expense. LANXESS does not bear any investment risk, but has the opportunity to purchase the battery-capable lithium carbonate obtained from Standard Lithium at a preferential price, i. H. at a discount of up to 20 percent on the market price. The final discount will be determined in conjunction with the completion of other project-related supply and service agreements between LANXESS and Standard Lithium.
LANXESS has the right to hold a stake of up to 49 percent in the project company, with the value of this stake being based on the company’s capitalization.
By signing this agreement, LANXESS is securing opportunities in the attractive lithium market without taking the risk of losses or fluctuating raw material prices.