Standard Lithium Makes Progress in Advancing Lithium Production Project in US

Standard Lithium, a prominent player in the burgeoning lithium sector, has achieved a significant milestone in its ambitious mission to transform lithium production in the United States. The company announced today the submission of its Definitive Feasibility Study for Phase 1A, marking a groundbreaking moment for American lithium production. Located at the LANXESS South Plant, this project promises to revolutionize lithium production while contributing to the sustainable supply of critical minerals.

With production set to commence in 2026, Standard Lithium's Phase 1A represents a historic juncture in the U.S. energy landscape. It not only signifies the first American lithium production venture in six decades but also introduces North America's inaugural commercial direct lithium extraction facility. This undertaking has the potential to double the current lithium production capacity in the United States, supplying a vital resource for the burgeoning electric vehicle industry and the clean energy sector.

Phase 1A's strategic positioning at the LANXESS South Plant allows for the processing of lithium-rich brine through pre-existing infrastructure. The Definitive Feasibility Study underscores the project's robust economic viability, with an initial annual production target of 5,700 tonnes and an average annual output of 5,400 tonnes of high-quality, battery-grade lithium carbonate. This impressive performance is expected to endure over a 25-year operational lifespan, drawing from Proven and Probable Reserves of 208,000 tonnes LCE at an average concentration of 217 mg/L. Importantly, Phase 1A represents a remarkable 60-fold scale-up from the operational Demonstration Plant, which has effectively and efficiently extracted lithium from the same brine intended for the proposed commercial plant. The final investment decision for Phase 1A is projected to take place in the first half of 2024.

Standard Lithium envisions replicating the development model of Phase 1A across its portfolio of projects within the Smackover Formation, including the Southwest Arkansas Project and East Texas land holdings. Notably, the lithium concentrations in these projects exhibit an improvement from east to west across the Smackover Formation. Recent drilling results in East Texas yielded the highest-grade lithium brine concentrations in North America, measuring an impressive 663 mg/L. By leveraging the higher lithium concentrations and realizing economies of scale through the advancement of multiple projects, Standard Lithium is positioning itself to gain a competitive advantage as it expands its presence throughout the Smackover Formation.

In an era where the world is increasingly turning to cleaner energy solutions, Standard Lithium is poised to assume a leading role in securing a domestic and sustainable lithium supply. By doing so, the company is not only contributing to the nation's energy independence but also actively reducing its carbon footprint, aligning with the global push for greener and more sustainable energy solutions.