Standard Lithium Ltd (NYSE:SLI) is one of the best penny stocks to buy according to Reddit. Standard Lithium Ltd (NYSE:SLI) announced on March 9 that Smackover Lithium, a joint venture (JV) between Standard Lithium Ltd. and Equinor, through subsidiaries of Equinor ASA, signed its first commercial offtake agreement for the South West Arkansas Project with Trafigura Trading LLC. Trafigura has an established presence across battery metals markets, including lithium, and is a market leader in the global commodities industry.

Standard Lithium Ltd (NYSE:SLI) reported that the terms of the binding take-or-pay offtake agreement stated that Trafigura will be supplied with 8,000 metric tonnes per year of battery-quality lithium carbonate by the JV over a 10-year period, which would begin at the start of commercial production. The pricing terms of the agreement are subject to confidentiality, but are structured to support the anticipated financing for the project.

It further stated that the JV is seeking to finalize customer offtake agreements for around 80% of the 22,500 tonnes of annual nameplate lithium carbonate capacity for the initial phase of the SWA Project, with the first agreement representing over 40% of the targeted offtake commitments. In addition, advanced commercial negotiations are underway between the JV and multiple additional parties, aimed at completing this process as soon as practical.

Standard Lithium Ltd (NYSE:SLI) is involved in the testing and proving of the commercial viability of lithium extraction. The company’s projects include Arkansas Lithium, Lithium Brine Processing, and California Lithium.

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