Standard Lithium secures $100m financing from Koch
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Standard Lithium secures $100m in financing from Koch

25 Nov 2021 (Last Updated November 25th, 2021 11:58)

Standard Lithium and subsidiaries of Koch Industries will explore strategic opportunities to work together in other key areas.

Standard Lithium has secured a $100m direct investment from Koch Investments Group subsidiary Koch Strategic Platforms.

Made through a direct private placement, the funding is intended to support Standard Lithium’s strategic development goals.

Koch’s investment follows the completion of its extensive due diligence into Standard Lithium’s LiSTR direct lithium extraction (DLE) technology, demonstration plant and development objectives.

Standard Lithium will issue 13.48 million common shares to KSP at $7.42 (C$9.43) apiece.

The firm plans to use the investment proceeds to advance the first commercial project proposed for the Lanxess facility in southern Arkansas, US.

These funds will also be used for the expansion of the South West Arkansas lithium project, which comprises 30,000 acres of separate brine leases.

Standard Lithium said that the investment funds would allow it to develop and commercialise modern technologies related to lithium extraction and processing.

Standard Lithium CEO Robert Mintak said: “We’re entering an important phase for Standard Lithium and we’re thrilled to be starting it with a globally recognised industrial leader like Koch Strategic Platforms as a partner.

“KSP has an impressive track record of investing in disruptive technologies and their backing is an important endorsement of the company’s core technology, development plans and of our intent to make the Gulf Region a leading supplier of lithium resources.”

Standard Lithium and subsidiaries of Koch Industries will also explore strategic opportunities to collaborate in several key areas.

sKoch Strategic Platforms president David Park said: “KSP is focusing on investing in companies with strong tailwinds that are disrupting the market as we know it.

“This is an exciting time for energy transformation and we believe KSP’s investment in Standard Lithium can help accelerate the production of lithium resources right here at home.”

Earlier this year, Albemarle announced plans to expand the capacity at its lithium production facility at Silver Peak, Nevada, US.