Standard Lithium gets $225 million grant for South Arkansas

Standard Lithium Ltd., one of the major firms carrying out lithium development in south Arkansas just closed on a $225 million grant from the Biden administration’s Department of Energy as he goes out the door to be replaced by Donald Trump in the White House.

Standard Lithium and Equinor, a global energy leader jointly own the U.S susidiary, SWA Lithium LLC and the grant will fund their exploration and development efforts in the Smackover formation of the state.

“Closing of the DOE grant is a testament to the caliber of the South West Arkansas project,” said David Park, CEO and Director of Standard Lithium. “SWA is one of the highest-grade lithium brine projects in North America, and through the use of DLE technology, a near-term, sustainable opportunity to help secure America’s domestic lithium supply chain.”

“The U.S. Department of Energy’s support demonstrates the project’s maturity and strengthens its financial robustness as we work towards a final investment decision. We look forward to working with Standard Lithium and alongside the local community to enhance the US lithium supply chain by deploying innovative technology,” says Hege Skryseth, Executive Vice President for Technology, Digital & Innovation in Equinor.

Map of the U.S. showing inset with a shaded area indicating Smackover Formation and Sampling area. See description for details.

The SWA project is expected to be one of the world’s first commercial-scale Direct Lithium Extraction facilities. The project, located in Lafayette and Columbia Counties, Arkansas, is expected to produce 45,000 tons per annum of lithium carbonate, developed in two phases of 22,500 tonnes each. It is being developed in partnership with global energy leader Equinor, with ownership shared at 55% by Standard Lithium and 45% by Equinor.

A Definitive Feasibility Study and Front-End Engineering Design for the Project are currently underway. The partnership is targeting a Final Investment Decision (“FID”) by the end of 2025 with Phase 1 production commencing as soon as 2028.

As part of receiving the grant, the Project is subject to the National Environmental Policy Act (“NEPA”) and will require completion of an Environmental Assessment (“EA”). The Company expects to complete the EA this year, prior to reaching FID. More information, including the opportunity for public comment and review, will be shared as the process progresses beginning in 2025.

David Park stated, “We’re committed to ensuring this project is a win for the Lewisville and southwest Arkansas communities. For us that means adding approximately 100 direct, long-term jobs and 300 construction jobs, with a commitment to hire at least 40% of the operations workforce locally.”

Additionally, this Project will further benefit the local community through infrastructure improvements, healthcare initiatives, educational partnerships, and workforce development programs.