Standard Lithium (SLI) and Equinor's (EQNR) Smackover Lithium partnership said Tuesday it awarded an engineering, procurement, construction and commissioning contract for the central processing facility at the South West Arkansas lithium project to S&B Engineers and Constructors.

Financial terms were not provided.

Smackover Lithium said engineering and development consultancy firm Hatch will provide engineering and commissioning support as a subcontractor.

The processing facility represents about two-thirds of the project's estimated capital spending and is expected to support planned annual production of 22,500 tonnes of battery-grade lithium carbonate in the initial phase, according to the company.

Smackover Lithium said the agreement includes a limited notice to proceed covering engineering, permitting and early procurement activities before a full notice to proceed following a positive final investment decision.

The company said it has now completed the key construction vendor agreements required before the final investment decision and continues to work on customer supply agreements and project financing.

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