Standard Lithium and partner Equinor’s efforts to operate one of the world’s first commercial-scale direct lithium extraction (DLE) facilities got a $225 million boost from the U.S. Department of Energy (DOE), the companies said Jan. 16.
The companies finalized a grant from the DOE’s Office of Manufacturing and Energy Supply Chains. The funding will go toward a processing facility being built for the South West Arkansas (SWA) project located in Lafayette and Columbia counties. The first phase of the project aims to produce 22,500 tonnes of lithium carbonate annually for use in battery production.
“Closing of the DOE grant is a testament to the caliber of the South West Arkansas project,” said Standard Lithium CEO David Park. “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.”
DLE involves extracting lithium, a key component in electric vehicle (EV) batteries and other energy storage systems, directly from brine using technologies and processes such as adsorption, resin or membranes. The method is considered more environmentally friendly compared with other methods such as hard rock mining and solar evaporation brine extraction with ponds, as it requires less land, is faster and consumes less water.
Lithium-rich saltwater in the Smackover Formation of southern Arkansas has been the site of activity in recent years amid the drive toward lower-carbon energy and the push to increase use of EVs. Other companies targeting lithium in Arkansas include Albemarle, Exxon Mobil Corp. and Occidental Petroleum. The area was once known for oil production.
Lithium resources in Smackover brines of southern Arkansas could be between 5.1 MMtonnes and 19 MMtonnes, according to machine-learning estimates released in 2024 by the U.S. Geological Survey.
Equinor and Standard Lithium are targeting more lithium carbonate than originally planned. The companies have their sights set on producing 45,000 tonnes per annum, which will be developed in two phases of 22,500 tonnes each, Equinor said in a news release. The processing facility will be located in Lafayette County, with brine being sourced from both Lafayette and Columbia counties.
Currently, a definitive feasibility study and a FEED study are underway to mature the project toward a final investment decision (FID), Equinor said.
The partners aim to reach FID by year-end 2025 and start production in 2028, Standard said.
SWA Lithium, the joint venture between Standard Lithium and Equinor, on Jan. 15 said it started drilling the Lester-1 vertical exploration well for the project. Targeting a depth of 2,926 m (9,600 ft), the companies plan to get core from the Upper and Middle Smackover limestone, with the bore terminating in the Lower Smackover.
“After installation of production casing, the borehole will be selectively perforated in zones of interest and multiple large-scale representative samples of lithium brine will be produced from the formation,” Standard said in a news release. “The same horizons of interest will also be subjected to permeability testing to assess reservoir characteristics and behavior. Discrete core samples will be sent for third party assessment of porosity and permeability.”
Results of drilling will help inform FEED and definitive feasibility studies.
As part of the field program, Standard also said it plans to re-enter four wells drilled in 2023 to conduct detailed reservoir testing and brine sampling work.
“The Standard Lithium and Equinor teams, along with our various field and drilling partners, are working hard to gather all the remaining subsurface data we require for our first commercial lithium project,” said Andy Robinson, director and president of Standard Lithium. “The remaining field programs are required so that our engineering and design partners can complete the FEED and DFS studies by mid-2025. The SWA Lithium Joint Venture remains focused on execution and moving the project towards commercialization.”
Standard Lithium holds a 55% ownership stake in the SWA project and Equinor holds 45%.