Standard Lithium, a near-commercial lithium developer, and Equinor, a global energy leader, have finalised a $225m grant from the US Department of Energy (DOE) for their South West Arkansas (SWA) lithium project.
The funding will support phase one construction of the SWA project, which is expected to become one of the first commercial-scale direct lithium extraction (DLE) facilities globally.
The project is a joint venture between Standard Lithium, with 55% ownership, and Equinor, with 45%.
Located in Lafayette and Columbia Counties, Arkansas, the SWA project is expected to produce 45,000t annually of lithium carbonate. It is due to be developed in two phases, each producing 22,500t.
Standard Lithium director and CEO David Park said: “Closing of the DOE grant is a testament to the calibre of the South West Arkansas project. 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.”
Currently, a definitive feasibility study and front-end engineering design are under way for the SWA project.
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The partnership is aiming for an FID by the end of 2025, with phase one production expected to begin in 2028.
The project is subject to the National Environmental Policy Act and will require an environmental assessment, which is due to be completed this year before reaching FID.
Public comment and review opportunities will be available as the process advances, starting in 2025.
Equinor Technology, Digital & Innovation EVP Hege Skryseth said: “The US 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.”
Beyond its economic impact, the SWA project is set to benefit the local community through infrastructure improvements, healthcare initiatives, educational partnerships and workforce development programmes.
“We are committed to ensuring this project is a win for the Lewisville and south-west 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,” Park added.
In May last year, Standard Lithium announced a strategic partnership with Equinor for an investment of up to $160m to advance sustainable lithium projects in Arkansas, US.
Under the agreement, Equinor would invest up to $160m (Nkr1.82bn), securing a 45% stake in Standard Lithium’s projects in south-west Arkansas and east Texas properties.
