Standard Lithium (SLI) Citigroup 2025 Basic Materials Conference summary

Company overviews and strategies

• Lithium Royalty Corp holds 37 global royalties, with key assets in Brazil, Argentina, and a strong presence in Canada, Australia, and Brazil. It maintains a healthy balance sheet with no debt and $27.5 million in cash.

• Standard Lithium is advancing the Southwest Arkansas project with a $1.5 billion investment, targeting 22,500 tons of lithium carbonate production by 2028, and plans to expand to 150,000 tons per year by 2035.

• Standard Lithium secured a $225 million DOE grant and recently raised $130 million in equity, with strong support from partner Equinor.

• Both companies are open to direct lithium extraction (DLE) technology, with Standard operating a demonstration facility and Lithium Royalty Corp considering asset-specific DLE investments.

Industry demand and supply outlook

• Lithium demand is projected to grow 25-30% in 2026, with energy storage systems (ESS) driving a significant share of growth.

• Energy storage is becoming a larger part of the market, expected to reach 27% of industry demand by year-end, with 50-70% growth rates.

• Supply growth is expected at 20% next year, likely leading to a market deficit and tightening supply-demand balance by 2026.

• Regional demand drivers include AI and data center build-out in the U.S., renewable integration in Europe, and solar expansion in the Middle East.

U.S. supply chain and government involvement

• The U.S. is recognized as being decades behind China in battery supply chain development, with government agencies aware but under-resourced.

• Permitting is a major challenge for U.S. projects, though private land projects like Standard's face fewer hurdles.

• The government is considering multiple tools, including price supports, investments, and tariffs, to counteract market manipulation and support domestic supply.

• Lithium Royalty Corp is considering more U.S. investments due to a pro-business environment and robust demand, while maintaining a diversified global portfolio.