The US stock market opened and closed higher on Tuesday, with the three major indices recovering the losses from the previous trading day’s sell-off.
Driven by positive news, the share price of Lithium mining startup Standard Lithium (SLI) rose. As of 10:10 a.m. Eastern Time, the share price increased by 7.8%, attracting the attention of investors.
In the 8-K filing submitted to the U.S. Securities and Exchange Commission (SEC) this morning, Standard Lithium announced that in accordance with Executive Order 14241 of U.S. President Trump on “Immediate measures to increase U.S. mineral production”, The Smackover Lithium Southwest Arkansas project (SWA), a joint venture between the company and the Norwegian energy company Equinor ASA, has been designated as a “priority transparency critical mineral project”.
The support from the White House marks the strong backing of the federal government for this project, which also makes the SWA project one of only three domestic lithium projects in the United States to receive support from the Department of Energy.
However, it remains to be seen whether this support is real finance or merely moral praise. As Standard Lithium continues to develop from the start-up stage and moves towards the actual lithium production business, investors should expect that the company will need to invest a large amount of capital expenditure.
However, analysts surveyed by S&P Global Market Intelligence said that it would be almost impossible for Standard Lithium to achieve revenue and profit before 2027.
That is to say, today’s news is a positive development for Standard Lithium, but that’s all. This start-up company remains a speculative stock and can only be treated as one.
