March 9 (Reuters) - Standard Lithium ( SLI ) said on

Monday its joint venture with Norway's Equinor ( EQNR ) had

signed its first binding offtake agreement to supply lithium

carbonate from its southwest Arkansas project to commodities

trader Trafigura.

The joint venture, Smackover Lithium, will supply Trafigura

with 8,000 metric tons per year of battery-grade lithium

carbonate over a 10-year period starting when commercial

production begins.

The agreement marks a key milestone for the southwest

Arkansas project as the partners seek to secure long-term

customers and financing ahead of a final investment decision and

construction.

Smackover Lithium is targeting about 22,500 metric tons of

annual lithium carbonate production capacity in the project's

first phase and plans to secure offtake agreements for around

80% of that output.

The Trafigura agreement covers more than 40% of that

targeted volume.

Smackover Lithium expects to reach a final investment

decision on the project in 2026, with first production

anticipated in 2028.