I've been following Standard Lithium (SLI) for a few years. It’s a lithium mining company and its up over 240% this year. Good news today in the form of an offtake agreement makes their future success much more likely. I think the market may digest this news for a bit and then move up again.
https://www.reuters.com/business/energy/standard-lithium-equinor-jv-inks-lithium-offtake-deal-with-trafigura-2026-03-09/
# Investment Case
- Demand for Lithium is increasing because of the technological environment. Electric cars, batteries, AI etc.
- Has a patented Direct Lithium Extraction (DLE) tech developed with Koch. This method is far cheaper and more environmentally friendly than current methods as it extracts lithium carbonate and lithium hydroxide from a produced brine. This is the main reason they are valuable.
- Major investments from Equinor, Koch Industries, and Institutions
- $225M grant from the U.S. Department of Energy approved under the Biden Administration
- Included in Trump's Executive Order 14241 for fast-track permitting
- High upside - Trading at $4.45 – Koch Industries bought at $7.42. All time high is $12.72.
- Near term news and catalyst:
- Announced this morning that they had a contract with Trafigura for them to buy 35-40% of SLIs product over 10 years.
- FID - Final investment decision expected to be announced the first half of 2026. This would mean they are making the decision to invest based on the financing terms, customer base, and ability to produce profit off of those.
- Potential acquisition - several oil majors in the same area who have not made a lot of progress with their own DLE projects. Acquisition at this stage is possible.
#Position
This morning I had 30,000 shares with a cost basis of $1.81 and 130 $7.50 April25 calls. After the offtake news I purchased another 5000 shares at $4.30.
