Smackover Lithium’s South West Arkansas Project Receives Royalty Rate Approval From the Arkansas Oil and Gas Commission
The Arkansas Oil and Gas Commission (AOGC) has unanimously approved a 2.5% royalty rate for the Reynolds Unit in Phase I of Smackover Lithium's South West Arkansas (SWA) Project. This marks the first-ever lithium brine extraction royalty rate approval in Arkansas, setting a precedent for the industry. The total compensation package includes an additional brine fee of $65.05 per acre annually, bringing the total royalty to approximately 3% at current lithium prices.
Smackover Lithium, a joint venture between Standard Lithium (NYSE:A:SLI) and Equinor, plans to achieve a production capacity of 22,500 tonnes per year of battery-quality lithium carbonate at the Reynolds unit, with full commercial production expected by 2028.
La Arkansas Oil and Gas Commission (AOGC) ha approvato all'unanimità una royalty del 2,5% per l'unità Reynolds nella Fase I del progetto South West Arkansas (SWA) di Smackover Lithium. Questo rappresenta la prima approvazione di una royalty per l'estrazione di salamoia di litio in Arkansas, stabilendo un precedente per il settore. Il pacchetto di compensazione totale include una tassa aggiuntiva sulla salamoia di 65,05 dollari per acro all'anno, portando la royalty complessiva a circa il 3% ai prezzi attuali del litio.
Smackover Lithium, una joint venture tra Standard Lithium (NYSE:A:SLI) ed Equinor, prevede di raggiungere una capacità produttiva di 22.500 tonnellate all'anno di carbonato di litio di qualità per batterie presso l'unità Reynolds, con la piena produzione commerciale prevista entro il 2028.
La Comisión de Petróleo y Gas de Arkansas (AOGC) ha aprobado por unanimidad una tasa de regalías del 2.5% para la Unidad Reynolds en la Fase I del Proyecto South West Arkansas (SWA) de Smackover Lithium. Esto marca la primera aprobación de una tasa de regalías para la extracción de salmuera de litio en Arkansas, estableciendo un precedente para la industria. El paquete total de compensación incluye una tarifa adicional de salmuera de 65.05 dólares por acre anualmente, elevando la regalía total a aproximadamente un 3% con los precios actuales del litio.
Smackover Lithium, una empresa conjunta entre Standard Lithium (NYSE:A:SLI) y Equinor, planea alcanzar una capacidad de producción de 22,500 toneladas por año de carbonato de litio de calidad para baterías en la unidad Reynolds, con la producción comercial completa esperada para 2028.
아칸소 석유 및 가스 위원회(AOGC)는 Smackover Lithium의 South West Arkansas(SWA) 프로젝트 1단계 Reynolds 유닛에 대해 2.5% 로열티율을 만장일치로 승인했습니다. 이는 아칸소에서 리튬 브라인 추출 로열티율이 최초로 승인된 사례로, 업계에 선례를 남겼습니다. 총 보상 패키지에는 연간 에이커당 65.05달러의 추가 브라인 수수료가 포함되어 있으며, 현재 리튬 가격 기준으로 총 로열티는 약 3%에 달합니다.
Smackover Lithium은 Standard Lithium (NYSE:A:SLI)과 Equinor의 합작 투자로, Reynolds 유닛에서 배터리 품질의 탄산리튬을 연간 22,500톤 생산할 계획이며, 2028년까지 완전 상업 생산을 목표로 하고 있습니다.
La Commission du pétrole et du gaz de l'Arkansas (AOGC) a approuvé à l'unanimité un taux de redevance de 2,5 % pour l'unité Reynolds dans la phase I du projet South West Arkansas (SWA) de Smackover Lithium. Il s'agit de la première approbation d'un taux de redevance pour l'extraction de saumure de lithium en Arkansas, établissant un précédent pour l'industrie. Le package de compensation total comprend une redevance supplémentaire sur la saumure de 65,05 dollars par acre et par an, portant la redevance totale à environ 3 % aux prix actuels du lithium.
Smackover Lithium, une coentreprise entre Standard Lithium (NYSE:A:SLI) et Equinor, prévoit d'atteindre une capacité de production de 22 500 tonnes par an de carbonate de lithium de qualité batterie à l'unité Reynolds, avec une production commerciale complète attendue d'ici 2028.
Die Arkansas Oil and Gas Commission (AOGC) hat einstimmig einen Lizenzsatz von 2,5 % für die Reynolds-Einheit in Phase I des South West Arkansas (SWA) Projekts von Smackover Lithium genehmigt. Dies ist die erste Genehmigung eines Lizenzsatzes für die Lithiumsoleförderung in Arkansas und setzt einen Präzedenzfall für die Branche. Das Gesamtvergütungspaket beinhaltet eine zusätzliche Solegebühr von 65,05 US-Dollar pro Acre jährlich, wodurch sich die Gesamtlizenzgebühr bei den aktuellen Lithiumpreisen auf etwa 3 % beläuft.
Smackover Lithium, ein Joint Venture zwischen Standard Lithium (NYSE:A:SLI) und Equinor, plant eine Produktionskapazität von 22.500 Tonnen pro Jahr an batterietauglichem Lithiumcarbonat in der Reynolds-Einheit, mit voller kommerzieller Produktion bis 2028.
- First-ever lithium brine extraction royalty rate approval in Arkansas, establishing important industry precedent
- Significant production capacity of 22,500 tonnes per year of battery-quality lithium carbonate
- Reasonable royalty rate of 2.5% plus brine fee demonstrates state support for lithium development
- Project moving forward towards final investment decision
- Commercial production not expected until 2028
- Additional royalty payments will impact operational costs
Insights
AOGC's first-ever lithium royalty approval establishes favorable economics for Standard Lithium's major Arkansas project, advancing toward 2028 production.
The Arkansas Oil and Gas Commission's unanimous approval of a 2.5% royalty rate for the Reynolds Unit at Smackover Lithium's South West Arkansas Project represents a significant regulatory milestone with multiple positive implications. This first-ever lithium royalty rate in Arkansas creates an important precedent for the state's emerging lithium industry.
The economics appear balanced and reasonable - the 2.5% quarterly gross royalty plus the brine fee ("in lieu bromine royalty") of
From a production perspective, the planned 22,500 tonnes per year of battery-quality lithium carbonate represents a substantial operation that would meaningfully impact North American supply. For context, this single project could potentially supply enough lithium for approximately 300,000-450,000 electric vehicles annually, depending on battery size and chemistry.
The regulatory certainty provided by this approval removes a key development obstacle and de-risks the project path toward a final investment decision. The targeted 2028 commercial production timeline indicates significant development work remains, including securing financing, completing detailed engineering, and construction.
For Standard Lithium investors, this approval demonstrates positive regulatory momentum in Arkansas and clarifies project economics. However, this remains one of many milestones required before revenue generation, with approximately three years of development still ahead before projected commercial production begins.
LEWISVILLE, Ark., May 29, 2025 (GLOBE NEWSWIRE) -- Smackover Lithium, a Joint Venture (“JV”) between Standard Lithium Ltd. (“Standard Lithium” or the “Company”) (TSXV:SLI) (NYSE:A:SLI) and Equinor, is pleased to announce that the Arkansas Oil and Gas Commission (“AOGC”) has unanimously approved the establishment of a
SWA Lithium LLC applied for a quarterly gross royalty of
“We thank the AOGC for granting royalty rate approval for Phase 1 of our SWA Project,” said Standard Lithium’s CEO, David Park, “Establishing a fair and equitable royalty will allow brine owners to be compensated while encouraging economic development of the state’s significant lithium resource.”
“The AOGC’s decision to grant a reasonable royalty for Phase 1 of our SWA Project demonstrates the state’s commitment to landowners and lithium development,” said Allison Kennedy Thurmond, VP for US Lithium at Equinor. “The royalty rate is only the beginning of capital investment and moves us one step closer to our final investment decision.”
The Reynolds unit has planned production capacity of 22,500 tonnes per year of battery-quality lithium carbonate once in full commercial production, expected in 2028. For more information about the SWA Project and Smackover Lithium, please visit www.smackoverlithium.com
About Standard Lithium Ltd.
Standard Lithium is a leading near-commercial lithium development company focused on the sustainable development of a portfolio of large, high-grade lithium-brine properties in the United States. The Company prioritizes projects characterized by high-grade resources, robust infrastructure, skilled labor, and streamlined permitting. Standard Lithium aims to achieve sustainable, commercial-scale lithium production via the application of a scalable and fully integrated Direct Lithium Extraction (“DLE”) and purification process. The Company’s flagship projects are located in the Smackover Formation, a world-class lithium brine asset, focused in Arkansas and Texas. In partnership with global energy leader Equinor, Standard Lithium is advancing the South West Arkansas project, a greenfield project located in southern Arkansas, and actively exploring promising lithium brine prospects in East Texas. Standard Lithium also holds an interest in certain mineral leases in the Mojave Desert in San Bernardino County, California.
Standard Lithium trades on both the TSX Venture Exchange and the NYSE American under the symbol “SLI”. Please visit the Company’s website at www.standardlithium.com.
About Equinor
Equinor is an international energy company committed to long-term value creation in a low-carbon future. Equinor’s portfolio of projects encompasses oil and gas, renewables and low-carbon solutions, with an ambition of becoming a net-zero energy company by 2050. Headquartered in Norway, Equinor is the leading operator on the Norwegian continental shelf and is present in around 30 countries worldwide. Equinor’s partnership with Standard Lithium to mature DLE projects builds on its broad US energy portfolio of oil and gas, offshore wind, low carbon solutions and battery storage projects.
For more information on Equinor in the US, please visit: Equinor in the US - Equinor
Investor and Media Inquiries
Chris Lang
Standard Lithium Ltd.
+1 604 409 8154
investors@standardlithium.com
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. This news release may contain certain “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995 and applicable Canadian securities laws. When used in this news release, the words “anticipate”, “believe”, “estimate”, “expect”, “target”, “plan”, “forecast”, “may”, “schedule” and other similar words or expressions identify forward-looking statements or information. These forward-looking statements or information may relate to intended development timelines, future prices of commodities, accuracy of mineral or resource exploration activity, reserves or resources, regulatory or government requirements or approvals, the reliability of third party information, continued access to mineral properties or infrastructure, fluctuations in the market for lithium and its derivatives, changes in exploration costs and government regulation in Canada and the United States, and other factors or information. Such forward-looking statements represent the Company’s current views with respect to future events and are necessarily based upon a number of assumptions and estimates that, while considered reasonable by the Company, are inherently subject to significant business, economic, competitive, political and social risks, contingencies and uncertainties. Many factors, both known and unknown, could cause results, performance or achievements to be materially different from the results, performance or achievements that are or may be expressed or implied by such forward-looking statements. The Company does not intend, and does not assume any obligation, to update these forward-looking statements or information to reflect changes in assumptions or changes in circumstances or any other events affecting such statements and information other than as required by applicable laws, rules and regulations.
FAQ
What royalty rate did Smackover Lithium (SLI) receive for its South West Arkansas Project?
What is the expected production capacity of SLI's Reynolds Unit?
When will Smackover Lithium's SWA Project begin commercial production?
Who are the partners in the Smackover Lithium joint venture?
Why is this royalty rate approval significant for SLI?
