Standard Lithium, Equinor Receive DOE Grant for Arkansas Lithium Project

Researched by Industrial Info Resources (Sugar Land, Texas)--SWA Lithium, a joint venture of Standard Lithium (Vancouver, British Columbia) and energy major Equinor (NYSE:EQNR) (Stavanger, Norway), has received a $225 million grant from the U.S. Department of Energy (DOE) to develop the first phase of a direct lithium extraction (DLE) facility in Arkansas. SWA is owned 55% by Standard Lithium and 45% by Equinor.

What is known as the South West Arkansas (SWA) project, located in Lafayette and Columbia counties, is expected to be one of the world's first DLE facilities. DLE is seen as a key innovation for meeting the growing demand for lithium and offers advantages over traditional mining techniques. DLE requires significantly less land and water, and by avoiding evaporation ponds and open-pit mining, minimizes environmental impact. In addition to a faster production time, the method also can recover lithium from underground brines more efficiently than traditional evaporation techniques.

A definitive feasibility study and front-end engineering design for the project are presently underway, and the companies are targeting a final investment decision for the project by the end of this year.

The SWA project will be built in two phases, and the DOE grant will go toward construction of Phase I. This initial phase aims to produce 22,500 tons of battery-grade lithium carbonate using technology developed by Koch Technology Solutions (Redcar, United Kingdom). Standard Lithium and Equinor are aiming for production to begin by 2028.

A second phase of construction would double output to 45,000 tons per year and could be implemented by as soon as 2030. The facility is expected to a have a 20-year mine life. Subscribers to Industrial Info's Global Market Intelligence (GMI) Project Database can learn more by viewing the reports on Phase I and Phase II construction.

Earlier this week, Standard Lithium announced that SWA was in the process of drilling a new well at the site and reexamining previously drilled wells to help understand production modelling and improve the knowledge of the Smackover formation where the project is located. As of Wednesday, the company reported the well had reached a depth of 8,000 feet, on its way to a targeted depth of 9,600 feet.

Arkansas has become a hotspot for lithium development, and the SWA project is not the only project in the state belonging to Standard Lithium, which has another in the Smackover Formation. Standard Lithium hopes to convert a demonstration plant into a commercial-scale operation over three phases of construction, the first of which could kick off in the coming months. The first phase will produce approximately 5,400 tons per year of lithium carbonate, with the aim that subsequent phases of construction will lift this to 20,900 tons per year over a 25-year life. Subscribers can learn more by viewing the related project reports.

Several other companies have lithium projects in Arkansas, notably oil and gas major Exxon Mobil Corporation (NYSE:XOM) (Spring, Texas), which seems to do nothing in a small way. On 120,000 acres of brine leases within the Smackover formation, ExxonMobil is aiming to implement DLE technology to produce 100,000 tons per year of lithium carbonate. Construction on the project could begin early next year, with production beginning in 2027, with ExxonMobil aiming to become a leading supplier to the U.S. automotive market by 2030. ExxonMobil already has signed a memorandum of understanding with LG Chem (Seoul, South Korea) to supply a battery plant in Tennessee with as much as 100,000 tons per year of lithium carbonate. Subscribers can learn more by viewing the project report and viewing November 21, 2024, article - ExxonMobil Could Supply LG Chem With Lithium.

Subscribers to Industrial Info's GMI Database can click here to view reports for all of the projects discussed in this article and click here for the related plant profiles.

Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 trillion (USD).