May 8 (Reuters) - Equinor ( EQNR ) on Wednesday said it

has entered an agreement with Standard Lithium Limited ( SLI ) to

acquire a 45% stake in lithium projects located in Southwest

Arkansas and East Texas.

Equinor ( EQNR ) will initially compensate Standard Lithium ( SLI ) $30

million and cover project expenses up to $33 million.

Potential future milestones could see Equinor ( EQNR ) pay an additional

$70 million in aggregate to Standard Lithium ( SLI ) if a final

investment decision is taken, the release added.

Standard Lithium ( SLI ) will retain operatorship, with Equinor ( EQNR )

contributing its experience in subsurface operations.

"We see sustainably produced lithium as an enabler in the

energy transition," as this partnership allows Equinor ( EQNR ) to enter

the lithium space while focusing on environmentally friendly

Direct Lithium Extraction (DLE)technologies, Equinor ( EQNR ) senior vice

president Morten Halleraker said.

President Joe Biden's landmark climate change law created

big subsidies for producers of minerals like lithium, a key

material for electric vehicles and battery storate, and copper

that are needed in equipment like batteries and solar panels.