Standard Lithium (TSXV: SLI, NYSE: SLI) shares gained 7% on Friday after its jointly owned U.S. subsidiary, SWA Lithium LLC was chosen to enter talks for a funding award of up to US$225 million from the U.S. Department of Energy.
The funding is aimed at supporting the construction of the central processing facility for Stage 1 of the South West Arkansas project, located in Lafayette and Columbia Counties, Ark. Ownership of project is divided between Standard Lithium, holding 55%, and Equinor, holding 45%.
The first stage aims to produce 22,500 tonnes of battery-grade lithium carbonate annually, using Direct Lithium Extraction (DLE) technology.
Standard Lithium shares traded at $1.82 apiece on Friday afternoon, valuing the company at $314.4 million. Its shares traded in a 52-week range of $1.45 to $4.85.
The funding is one of the largest awards ever granted to a U.S. critical minerals project. It is part of the second wave of funding under the Infrastructure Investment and Jobs Act, intended to award US$3 billion to 25 projects for the battery manufacturing sector.
Standard Lithium plans to achieve a total annual output of 45,000 tonnes of lithium carbonate at South West Arkansas, to be developed in two stages of 22,500 tonnes each.
Standard Lithium noted that a definitive feasibility study and front-end engineering design are currently underway to support this expansion.
Be the first to comment on "Standard Lithium shares rise on US$225M award bid"