Standard Lithium, Equinor secure US$225M to develop Arkansas project

Standard Lithium (TSXV: SLI) announced on Thursday that it has closed a US$225-million grant from the U.S. Department of Energy to to support the stage-one construction of the South West Arkansas lithium project.

Since December, Standard Lithium has operated a pilot direct lithium extraction (DLE) plant at the project, which is owned in collaboration with Norway’s state-owned petroleum company Equinor (NYSE: EQNR).

The pilot plant is expected to operate until late this month, producing 1,000 gallons (3,785 litres) of a 6% lithium chloride solution.

Studies underway

A definitive feasibility study and front-end engineering design for the project are underway. The partnership is targeting a final investment decision by the end of this year, with stage one production slated to begin as early as 2028.

“South West Arkansas is one of the highest-grade lithium brine projects in North America,” Standard Lithium CEO David Park said in a release.

“Through the use of DLE technology, this project presents a near-term, sustainable opportunity to help secure America’s domestic lithium supply chain.”

Standard Lithium aims to achieve a total output of 45,000 tonnes of lithium annually at the site, developed in two stages of 22,500 tonnes each.

Shares of Standard Lithium closed 1.7% higher on Thursday in Toronto at $2.39 apiece. The company’s market capitalization stands at $411.2 million. Equinor’s stock fell 2.3% in New York to US$25.06, valuing the company at US$71.5 billion.