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Released September 08, 2025 | SUGAR LAND
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Written by Paul Wiseman for Industrial Info Resources (Sugar Land, Texas)--Development of Smackover Lithium's South West Arkansas (SWA) lithium project got a boost last week with the announced results of a definitive feasibility study (DFS). Smackover Lithium is a joint venture (JV) between Standard Lithium Limited (Vancouver, British Columbia), which holds 55%, and Equinor ASA (Stavanger, Norway), which holds 45%.
The DFS indicates first production could begin in 2028. Initial production capacity of battery-quality lithium carbonate is projected to be 22,500 tonnes per annum (TPA). If it begins on schedule, this project would mark the first commercial direct-lithium extraction (DLE) project in the Smackover formation--and in the U.S. altogether.
Subscribers to Industrial Info's Global Market Intelligence (GMI) Metals & Minerals Project and Plant databases can learn more about the SWA development from a detailed project report and plant profile.
Smackover's DFS also found that, with an average lithium concentration of 481 milligrams per liter (mg/L), the field's likely productive life will last at least 20 years.
The project's profitability outlook is positive, with a 20-year forward pricing curve for battery-quality lithium carbonate at $22,400 per ton (according to Fastmarket), versus overall all-in operating costs at $5,924 per ton over the life of the project. Total capex is expected to be $1.45 billion.
The announcement adds that they have re-entered wells involved in a previously executed prefeasibility study and have drilled a new infill well to upgrade their assessment. As a result, the "total measured and indicated resource" is 1.777 million tonnes of lithium carbonate equivalent, at an average concentration of 442 mg/L for 0.50 cubic kilometers of brine volume.
Encompassing about 30,000 acres of brine leases, SWA is near Magnolia in Columbia County and Lewisville in Lafayette County, Arkansas.
"The SWA Project is intended as the first of several projects to be developed by the JV throughout the Smackover Region, and it is envisaged that the major design decisions and learnings from this first greenfield facility will form the basis for future expansion phases or projects," Standard Lithium said in a press release.
What they learn should help reduce capital intensity and operating costs in the future, the company said.
Altogether, Industrial Info is tracking 18 Smackover formation projects, worth more than $8 billion. Subscribers can click here for a list of detailed project reports.
For related news on Smackover developments, see July 16, 2025, article - GM-Backed Company Joins Smackover Lithium Rush, and June 19, 2025, article - With Two Acquisitions, Chevron Joins the March to Lithium.
In May of this year, the Arkansas Oil and Gas Commission (AOGC) awarded its first-ever lithium royalty permit to SWA, at a rate of 2.5%. In June, the state approved the same rate for Exxon Mobil Corporation (Spring, Texas). The Smackover rush, including some of northeast Texas as well as southwest Arkansas, has been in high gear in recent months.
Energy Exploration Technologies Incorporated (EnergyX) (Austin, Texas) announced in July of this year it had closed an agreement to acquire Daytona Lithium Pty, Limited, a subsidiary Pantera Lithium Limited (West Perth, Western Australia), for about $40 million. That gave it access to Daytona's 35,000 Smackover acres.
In June, Chevron USA Incorporated, a subsidiary of Chevron Corporation (Houston, Texas), acquired 125,000 acres of leasehold positions from TerraVolta Resources (Houston) (100,000 acres) and East Texas Natural Resources (25,000 acres).
Estimates are that more than 200,000 acres have been leased for lithium in that area.
An October 2024 study by the U.S. Geological Survey (USGS) estimated that the formation holds between 5 million and 19 million tons of lithium reserves. "If commercially recoverable," it said, "the amount of lithium present would meet projected 2030 world demand for lithium in car batteries nine times over."
Because the U.S. currently imports about 25% of its lithium, economically developing this field could shift the mineral's status to an export. And as a vital ingredient in batteries for electric vehicles (EVs) and for the power grid, the U.S. Department of Energy (DOE) in August included lithium on its critical minerals list.
Accordingly, the DOE issued almost $1 billion in notices of finding opportunities (NOFO) for mining, processing and manufacturing technology advancements for minerals on that list. Up to $500 million may go to "processing and derivative battery manufacturing and recycling," which specifically includes "lithium, graphite, nickel, copper, aluminum," and other battery minerals.
Economic Impact: Some sections of the region have seen a small amount of oil and gas activity in the past, which largely has played out. Some developers are seeing the lithium interest as an opportunity to revitalize some local economies.
For its part, Smackover Lithium touts the creation of about 300 jobs during construction, and 100 or so long-term jobs once extraction is in operation.
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) platform 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 more than 200,000 current and future projects worth $17.8 trillion (USD).
The DFS indicates first production could begin in 2028. Initial production capacity of battery-quality lithium carbonate is projected to be 22,500 tonnes per annum (TPA). If it begins on schedule, this project would mark the first commercial direct-lithium extraction (DLE) project in the Smackover formation--and in the U.S. altogether.
Subscribers to Industrial Info's Global Market Intelligence (GMI) Metals & Minerals Project and Plant databases can learn more about the SWA development from a detailed project report and plant profile.
Smackover's DFS also found that, with an average lithium concentration of 481 milligrams per liter (mg/L), the field's likely productive life will last at least 20 years.
The project's profitability outlook is positive, with a 20-year forward pricing curve for battery-quality lithium carbonate at $22,400 per ton (according to Fastmarket), versus overall all-in operating costs at $5,924 per ton over the life of the project. Total capex is expected to be $1.45 billion.
The announcement adds that they have re-entered wells involved in a previously executed prefeasibility study and have drilled a new infill well to upgrade their assessment. As a result, the "total measured and indicated resource" is 1.777 million tonnes of lithium carbonate equivalent, at an average concentration of 442 mg/L for 0.50 cubic kilometers of brine volume.
Encompassing about 30,000 acres of brine leases, SWA is near Magnolia in Columbia County and Lewisville in Lafayette County, Arkansas.
"The SWA Project is intended as the first of several projects to be developed by the JV throughout the Smackover Region, and it is envisaged that the major design decisions and learnings from this first greenfield facility will form the basis for future expansion phases or projects," Standard Lithium said in a press release.
What they learn should help reduce capital intensity and operating costs in the future, the company said.
Altogether, Industrial Info is tracking 18 Smackover formation projects, worth more than $8 billion. Subscribers can click here for a list of detailed project reports.
For related news on Smackover developments, see July 16, 2025, article - GM-Backed Company Joins Smackover Lithium Rush, and June 19, 2025, article - With Two Acquisitions, Chevron Joins the March to Lithium.
In May of this year, the Arkansas Oil and Gas Commission (AOGC) awarded its first-ever lithium royalty permit to SWA, at a rate of 2.5%. In June, the state approved the same rate for Exxon Mobil Corporation (Spring, Texas). The Smackover rush, including some of northeast Texas as well as southwest Arkansas, has been in high gear in recent months.
Energy Exploration Technologies Incorporated (EnergyX) (Austin, Texas) announced in July of this year it had closed an agreement to acquire Daytona Lithium Pty, Limited, a subsidiary Pantera Lithium Limited (West Perth, Western Australia), for about $40 million. That gave it access to Daytona's 35,000 Smackover acres.
In June, Chevron USA Incorporated, a subsidiary of Chevron Corporation (Houston, Texas), acquired 125,000 acres of leasehold positions from TerraVolta Resources (Houston) (100,000 acres) and East Texas Natural Resources (25,000 acres).
Estimates are that more than 200,000 acres have been leased for lithium in that area.
An October 2024 study by the U.S. Geological Survey (USGS) estimated that the formation holds between 5 million and 19 million tons of lithium reserves. "If commercially recoverable," it said, "the amount of lithium present would meet projected 2030 world demand for lithium in car batteries nine times over."
Because the U.S. currently imports about 25% of its lithium, economically developing this field could shift the mineral's status to an export. And as a vital ingredient in batteries for electric vehicles (EVs) and for the power grid, the U.S. Department of Energy (DOE) in August included lithium on its critical minerals list.
Accordingly, the DOE issued almost $1 billion in notices of finding opportunities (NOFO) for mining, processing and manufacturing technology advancements for minerals on that list. Up to $500 million may go to "processing and derivative battery manufacturing and recycling," which specifically includes "lithium, graphite, nickel, copper, aluminum," and other battery minerals.
Economic Impact: Some sections of the region have seen a small amount of oil and gas activity in the past, which largely has played out. Some developers are seeing the lithium interest as an opportunity to revitalize some local economies.
For its part, Smackover Lithium touts the creation of about 300 jobs during construction, and 100 or so long-term jobs once extraction is in operation.
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) platform 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 more than 200,000 current and future projects worth $17.8 trillion (USD).
