U.S. Department of Energy Selects Standard Lithium and Equinor for Award Negotiation of Up to $225 Million for South West Arkansas Project
Standard Lithium and Equinor have been selected for up to $225 million award negotiation from the U.S. Department of Energy for their South West Arkansas lithium project. This funding will support the construction of a Central Processing Facility designed to produce 22,500 tonnes of battery-quality lithium carbonate annually using Direct Lithium Extraction technology.
The project, owned 55% by Standard Lithium and 45% by Equinor, is being expanded to target a total output of 45,000 tonnes per annum of lithium carbonate in two phases. Located in Lafayette and Columbia Counties, Arkansas, the project is expected to create up to 300 construction and 100 direct jobs, while benefiting the local community through infrastructure improvements and various development programs.
This selection is part of the DOE's efforts to expand domestic manufacturing of battery supply chain components and increase critical mineral production in the U.S.
Standard Lithium ed Equinor sono stati selezionati per negoziare un premio fino a 225 milioni di dollari dal Dipartimento dell'Energia degli Stati Uniti per il loro progetto di litio nella South West Arkansas. Questo finanziamento supporterà la costruzione di un Centro di Elaborazione Centrale progettato per produrre 22.500 tonnellate di carbonato di litio di qualità per batterie all'anno utilizzando la tecnologia di Estrazione Diretta del Litio.
Il progetto, di proprietà al 55% di Standard Lithium e al 45% di Equinor, viene ampliato per mirare a una produzione totale di 45.000 tonnellate all'anno di carbonato di litio in due fasi. Situato nelle contee di Lafayette e Columbia, Arkansas, si prevede che il progetto crei fino a 300 posti di lavoro nell'edilizia e 100 posti di lavoro diretti, beneficiando allo stesso tempo la comunità locale attraverso miglioramenti infrastrutturali e vari programmi di sviluppo.
Questa selezione fa parte degli sforzi del DOE per espandere la produzione nazionale di componenti della catena di approvvigionamento delle batterie e aumentare la produzione di minerali critici negli Stati Uniti.
Standard Lithium y Equinor han sido seleccionados para negociar un premio de hasta 225 millones de dólares del Departamento de Energía de EE. UU. para su proyecto de litio en la South West Arkansas. Este financiamiento apoyará la construcción de una Instalación Central de Procesamiento diseñada para producir 22,500 toneladas de carbonato de litio de calidad para baterías anualmente utilizando la tecnología de Extracción Directa de Litio.
El proyecto, propiedad del 55% de Standard Lithium y del 45% de Equinor, se está ampliando para alcanzar una producción total de 45,000 toneladas al año de carbonato de litio en dos fases. Ubicado en los condados de Lafayette y Columbia, Arkansas, se espera que el proyecto genere hasta 300 trabajos de construcción y 100 trabajos directos, beneficiando a la comunidad local mediante mejoras en la infraestructura y varios programas de desarrollo.
Esta selección es parte de los esfuerzos del DOE para expandir la fabricación nacional de componentes de la cadena de suministro de baterías y aumentar la producción de minerales críticos en EE. UU.
스탠다드 리튬과 에퀴노르가 미국 에너지부로부터 2억 2천 5백만 달러의 수상 협상 대상에 선정되었습니다. 이 자금은 남서부 아칸소의 리튬 프로젝트를 위해 중앙 처리 시설의 건설을 지원할 것입니다. 이 시설은 연간 2만 2천 5백 톤의 배터리 용량품질 리튬 탄산염을 생산하도록 설계되었으며, 직접 리튬 추출 기술을 사용할 것입니다.
이 프로젝트는 스탠다드 리튬이 55%, 에퀴노르가 45%의 지분을 보유하고 있으며, 두 단계에 걸쳐 연간 4만 5천 톤의 리튬 탄산염 생산을 목표로 확장되고 있습니다. 아칸소주 라파예트 카운티와 컬럼비아 카운티에 위치한 이 프로젝트는 300개의 건설 일자리와 100개의 직접 고용을 창출할 것으로 예상되며, 지역 사회에 인프라 개선과 다양한 개발 프로그램을 통해 혜택을 줄 것입니다.
이번 선정은 도에 의해 배터리 공급망 구성요소의 국내 제조를 확대하고 미국 내 중요 광물 생산을 증가시키려는 노력이 일환입니다.
Standard Lithium et Equinor ont été sélectionnés pour négocier un prix pouvant aller jusqu'à 225 millions de dollars avec le Département de l'Énergie des États-Unis pour leur projet de lithium dans le Sud-Ouest de l'Arkansas. Ce financement viendra soutenir la construction d'une Installation de Traitement Central conçue pour produire 22 500 tonnes de carbonate de lithium de qualité batterie par an en utilisant la technologie d'Extraction Directe de Lithium.
Le projet, détenu à 55 % par Standard Lithium et à 45 % par Equinor, est en cours d'expansion pour atteindre une production totale de 45 000 tonnes par an de carbonate de lithium en deux phases. Situé dans les comtés de Lafayette et Columbia, Arkansas, le projet devrait créer jusqu'à 300 emplois en construction et 100 emplois directs, tout en bénéficiant à la communauté locale grâce à des améliorations des infrastructures et à divers programmes de développement.
Cette sélection fait partie des efforts du DOE pour accroître la fabrication nationale des composants de la chaîne d'approvisionnement des batteries et augmenter la production de minéraux critiques aux États-Unis.
Standard Lithium und Equinor wurden ausgewählt, um bis zu 225 Millionen Dollar aus dem US-Energieministerium für ihr South West Arkansas Lithium-Projekt zu verhandeln. Diese Finanzierung wird den Bau einer Zentralen Aufbereitungsanlage unterstützen, die mit Direct Lithium Extraction Technologie jährlich 22.500 Tonnen lithiumhaltiges Carbonat in Batteriequalität produzieren soll.
Das Projekt, das zu 55% im Besitz von Standard Lithium und zu 45% von Equinor ist, wird erweitert, um eine Gesamtproduktion von 45.000 Tonnen pro Jahr Lithiumcarbonat in zwei Phasen anzustreben. Das Projekt, das in den Counties Lafayette und Columbia in Arkansas gelegen ist, wird voraussichtlich bis zu 300 Bau- und 100 direkte Arbeitsplätze schaffen und der lokalen Gemeinschaft durch Infrastrukturverbesserungen und verschiedene Entwicklungsprogramme zugutekommen.
Diese Auswahl ist Teil der Bemühungen des DOE, die heimische Produktion von Komponenten der Batterieversorgungskette auszubauen und die Produktion von kritischen Mineralien in den USA zu steigern.
- Secured up to $225 million in potential funding from the U.S. Department of Energy
- Planned production capacity of 22,500 tonnes of battery-quality lithium carbonate annually in Phase 1
- Total project output target increased to 45,000 tonnes per annum of lithium carbonate
- Partnership with Equinor, a global energy leader
- Expected creation of up to 300 construction and 100 direct jobs
- Funding is conditional and subject to final negotiations with the DOE
- Project is still in the development phase with ongoing Definitive Feasibility Study and Front-End Engineering Design
Insights
The $225 million DOE grant for Standard Lithium and Equinor's South West Arkansas project is a significant financial boost. This funding, covering a substantial portion of the Central Processing Facility's construction costs, dramatically reduces the companies' capital expenditure requirements. The project's expansion to 45,000 tonnes per annum of lithium carbonate production, up from the original plan, indicates strong market demand and potential for increased revenue streams.
The government's support also de-risks the project for investors, potentially attracting additional capital and improving the companies' financial positions. However, investors should note that the grant is still subject to final negotiations and full project costs are not disclosed. The 55-45 ownership split between Standard Lithium and Equinor suggests a balanced risk-reward structure for both companies.
This development signals a major shift in the U.S. lithium market. The government's substantial investment underscores the strategic importance of domestic lithium production, potentially reshaping the global supply chain. With the project's expanded capacity, it could meet ~
The use of Direct Lithium Extraction technology may give the project a competitive edge in terms of efficiency and environmental impact. However, investors should monitor potential challenges such as scaling up this relatively new technology and navigating regulatory landscapes. The project's success could catalyze further investment in U.S. lithium production, potentially impacting global lithium prices and market dynamics in the long term.
The DOE's support for this project aligns with the broader push for sustainable energy transition. The Direct Lithium Extraction technology proposed for use is generally considered more environmentally friendly than traditional lithium extraction methods, potentially reducing water usage and land disturbance. This could position the project favorably in terms of ESG criteria, an increasingly important factor for investors and consumers.
However, the environmental impact of large-scale lithium production in the region will require careful monitoring. The project's commitment to community health initiatives and infrastructure improvements suggests a proactive approach to local environmental and social concerns. Investors should keep an eye on the project's adherence to environmental regulations and its ability to maintain a social license to operate, as these factors can significantly impact long-term project viability and company valuation.
LEWISVILLE, Ark., Sept. 20, 2024 (GLOBE NEWSWIRE) -- Standard Lithium Ltd. (“Standard Lithium”) (TSXV:SLI) (NYSE:A:SLI), a leading near-commercial lithium development and technology company and Equinor, a global energy leader, today announced that its jointly-owned U.S. subsidiary, SWA Lithium LLC has been selected for up to US
Key Highlights:
- Conditional Award: The
$225 million funding by the DOE will support the construction of the Central Processing Facility (“CPF”) for Phase 1 of the South West Arkansas project. The CPF for Phase 1 is being designed to annually produce 22,500 tonnes of battery-quality lithium carbonate, utilizing Direct Lithium Extraction (“DLE”) technology. The U.S. Government's significant cost share demonstrates its commitment to the project, underscoring the strategic importance of developing a domestic supply chain for critical minerals. - Project Development and Expansion: The South West Arkansas project, located in Lafayette and Columbia Counties, Arkansas, is being developed in partnership with Equinor, with ownership shared at
55% by Standard Lithium and45% by Equinor. The project’s design is being updated from its original Preliminary Feasibility Study (PFS), and now targets a larger total output of 45,000 tonnes per annum of lithium carbonate, to be developed in two phases of 22,500 tonnes each. A Definitive Feasibility Study (DFS) and Front-End Engineering Design (FEED) are currently underway to support this expansion. - Location and Community Impact: The SWA project’s DLE and lithium carbonate facilities are planned to be located on a 118-acre property in rural Lafayette County, approximately 7 miles south of Lewisville, Arkansas. The brine unit that will source lithium-bearing brine for the project facilities spans lands in Lafayette and Columbia Counties. In addition to creating up to 300 construction and 100 direct jobs, the project will significantly benefit the local community through infrastructure improvements, community health initiatives, educational partnerships, and workforce development programs.
Standard Lithium’s CEO David Park stated: “The significant cost share from the U.S. Government demonstrates their continued support for investing in secure and sustainable supply chains of domestic lithium production. This decision by the Department of Energy validates the caliber of the project we are building through our de-risked approach to project development, strong partnerships, methodical testing, and purpose-built processes tailored to meet the specific demands of large-scale lithium production in the Smackover Formation. Moreover, it reflects the incredibly talented and dedicated team we have built to execute this vision, and most importantly the relationships we have built in our community and across the state to ensure this is a win for Arkansas.”
Allison Thurmond, Vice President of US Lithium at Equinor, said “The U.S. Department of Energy’s support for the South West Arkansas project demonstrates how important lithium is to America’s energy transition. This award underscores the commercial readiness of our projects and the strength of our partnership. We look forward to working with the U.S. Department of Energy and alongside local communities in southwest Arkansas to develop this critical mineral and build the next generation of lithium production."
Dr. Andy Robinson, President and COO of Standard Lithium, added, “We are honored to have been selected for this significant grant from the U.S. Department of Energy. This funding is a strong endorsement of the South West Arkansas project and our efforts to develop a secure and sustainable domestic lithium supply chain. The grant will enable us to accelerate the development of this world-class resource and position the project as a cornerstone of the U.S. battery materials industry.”
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 the highest quality 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 ASA, 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. Additionally, the Company is advancing the Phase 1A project in partnership with LANXESS Corporation, a brownfield development project located in southern Arkansas. Standard Lithium also holds an interest in certain mineral leases in the Mojave Desert in San Bernardino County, California.
Standard Lithium is jointly listed on the TSX Venture Exchange and the NYSE American under the trading symbol “SLI”. Please visit the Company’s website at https://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. Our partnership with Standard Lithium to mature DLE projects builds on our 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
About DOE’s Office of Manufacturing and Energy Supply Chains (MESC)
MESC plays a critical and unique role in catalyzing investments in America’s energy future to support the re-shoring, skilling, and scaling of U.S. manufacturing across energy supply chains. MESC serves as the frontline of clean energy deployment and accelerates America’s transition to a resilient, equitable energy future through data-driven investments in manufacturing capacity and workforce development. Learn more at www.energy.gov/mesc or LinkedIn.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in 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 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.
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