Standard Lithium receives $225 million funding for energy project in South Arkansas and Oklahoma
Standard Lithium Ltd. has secured a significant boost for its lithium extraction efforts in southern Arkansas with the recent approval of a $225 million grant from the U.S. Department of Energy. This funding represents a substantial investment in the future of lithium development in the region, supporting the exploration and development activities of Standard Lithium and Equinor, a global energy leader that co-owns the U.S. subsidiary, SWA Lithium LLC.
The project’s CEO and Director, David Park, expressed confidence in the quality and potential of the South West Arkansas project, highlighting its status as one of the highest-grade lithium brine projects in North America. Through the utilization of Direct Lithium Extraction (DLE) technology, the project aims to play a crucial role in securing America’s domestic lithium supply chain, offering a sustainable and efficient solution to meet the growing demand for lithium-based products.
The SWA project, located in Lafayette and Columbia Counties, Arkansas, is poised to become one of the world’s first commercial-scale Direct Lithium Extraction facilities, with an anticipated annual production capacity of 45,000 tons of lithium carbonate. This output will be achieved through the implementation of two distinct phases, each targeting 22,500 tonnes of production. The joint partnership between Standard Lithium and Equinor, with ownership shares at 55% and 45% respectively, underscores the collaborative nature of the project and the shared commitment to its success.
Currently, a Definitive Feasibility Study and Front-End Engineering Design for the project are in progress, with a target Final Investment Decision (FID) slated for the conclusion of 2025. The commencement of Phase 1 production is expected as early as 2028, marking a significant milestone in the project’s development timeline. As part of the grant approval process, the project will undergo a comprehensive Environmental Assessment (EA) under the National Environmental Policy Act (NEPA), ensuring compliance with environmental regulations and fostering transparent communication with stakeholders.
David Park emphasized the local benefits of the project, emphasizing the creation of approximately 100 direct, long-term jobs and 300 construction positions, with a commitment to hiring a significant portion of the operations workforce from the surrounding community. In addition to job creation, the project aims to enhance the local infrastructure, promote healthcare initiatives, forge educational partnerships, and facilitate workforce development programs to support the long-term prosperity of Lewisville and southwest Arkansas.
The successful closure of the DOE grant signifies a new chapter in the development of the South West Arkansas project, underscoring the potential for innovation, job creation, and economic growth in the region. As Standard Lithium and Equinor continue to advance their exploration and development efforts, the project stands poised to become a cornerstone of the domestic lithium supply chain, offering a sustainable and environmentally conscious solution to meet the evolving needs of the energy industry.
