Standard Lithium, in partnership with energy company Equinor, has successfully secured a $225 million grant from the U.S. Department of Energy (DoE) to develop a cutting-edge lithium extraction facility. The grant, awarded by the DoE's Office of Manufacturing & Energy Supply Chains, will support the construction of Phase 1 of the South West Arkansas (SWA) lithium project, which is poised to become one of the world’s first commercial-scale facilities using direct lithium extraction (DLE) technology.

The SWA project, a joint venture between Standard Lithium (55%) and Equinor (45%), aims to revolutionize the lithium extraction process, which is critical for meeting the growing demand for lithium in electric vehicle (EV) batteries and other renewable energy applications. Lithium has become a key component in the global shift toward cleaner energy, with its use in high-capacity batteries making it essential for the energy transition.

DLE, the method that will be used at the SWA facility, offers a faster, more efficient, and environmentally friendly approach to lithium extraction compared to traditional methods. Traditional lithium extraction often relies on extensive water usage, long processing times, and disruptive mining practices that can harm local ecosystems. In contrast, DLE technology reduces water consumption and minimizes habitat disruption, making it a much more sustainable option. This approach is expected to produce lithium more efficiently and with a smaller environmental footprint, aligning with the growing demand for cleaner and more sustainable mining practices.

The project will be located in the Lafayette and Columbia counties of Arkansas, a region rich in lithium-bearing brine deposits. Once operational, the SWA facility is projected to produce 45,000 metric tons per year of lithium carbonate, a critical material in battery production. The production will be developed in two phases, with each phase targeting 22,500 metric tons of lithium carbonate per year.

SWA Lithium plans to make a final investment decision by the end of 2025, with Phase 1 production expected to begin as early as 2028. This ambitious timeline underscores the growing urgency for lithium production as demand for EVs and renewable energy storage continues to rise. The grant from the DoE highlights the U.S. government's commitment to supporting the development of innovative technologies that can help meet the country’s energy and environmental goals.

The successful securing of the grant marks a significant milestone in the ongoing collaboration between Standard Lithium and Equinor, two companies committed to advancing sustainable energy solutions. This partnership strengthens its position as a leader in the lithium extraction space.