On September 20, 2024, Standard Lithium Ltd., a prominent lithium development and technology company, and Equinor, a global energy leader, announced that their jointly-owned subsidiary, SWA Lithium LLC, has been selected for award negotiations of up to $225 million from the U.S. Department of Energy (DOE). This funding, facilitated by the DOE's Office of Manufacturing and Energy Supply Chains (MESC), represents one of the largest awards for a U.S. critical minerals project and is part of the second wave of financing under the Infrastructure Investment and Jobs Act. The initiative aims to enhance domestic battery supply chain manufacturing and increase critical mineral production in the U.S. The provisional grant is contingent on successful final negotiations with the DOE.

The U.S. Department of Energy (DOE) has awarded a conditional $225 million funding package to support the construction of the Central Processing Facility (CPF) for Phase 1 of the South West Arkansas project. This facility, designed to produce 22,500 tonnes of battery-quality lithium carbonate annually using Direct Lithium Extraction (DLE) technology, underscores the government’s commitment to enhancing the domestic supply chain for critical minerals. Developed in partnership with Equinor, the project will see Standard Lithium holding a 55% stake while Equinor retains 45%. The project’s scope has been expanded from its original Preliminary Feasibility Study (PFS) to target a total output of 45,000 tonnes per year, to be achieved in two phases. Currently, a Definitive Feasibility Study (DFS) and Front-End Engineering Design (FEED) are underway to facilitate this growth. The facilities will be situated on a 118-acre site in rural Lafayette County, just south of Lewisville, Arkansas, with the brine unit sourcing lithium-bearing brine from surrounding lands. The project is expected to create approximately 300 construction jobs and 100 permanent positions, while also delivering significant benefits to the local community through infrastructure enhancements, health initiatives, educational partnerships, and workforce development programs.

David Park, CEO of Standard Lithium, emphasized the importance of the government’s support in fostering secure and sustainable domestic lithium production. He stated that the DOE’s decision reflects the project’s strong foundation built on strategic partnerships and tailored processes designed for large-scale lithium production.

Allison Thurmond, Vice President of U.S. Lithium at Equinor, noted that the DOE’s backing underscores the vital role lithium plays in America’s energy transition and affirms the commercial readiness of their projects. She expressed eagerness to collaborate with the DOE and local communities in southwest Arkansas to develop this essential mineral.

Dr. Andy Robinson, President and COO of Standard Lithium, added that the grant is a significant endorsement of their efforts to establish a secure domestic lithium supply chain. He believes the funding will accelerate the development of this world-class resource, positioning the project as a cornerstone of the U.S. battery materials industry.