FAQ: Standard Lithium's South West Arkansas Project Definitive Feasibility Study
Summary
Standard Lithium's joint venture with Equinor has filed a Definitive Feasibility Study for the South West Arkansas lithium project, outlining plans to produce 22,500 tonnes of battery-grade lithium carbonate annually over 20 years. This positions the project to become the first commercial Direct Lithium Extraction operation in the United States, with construction expected to begin in 2026.
What is the main announcement from Standard Lithium?
Standard Lithium announced that its joint venture with Equinor, Smackover Lithium, has filed the Definitive Feasibility Study for the South West Arkansas lithium project, detailing plans for annual production of 22,500 tonnes of battery-grade lithium carbonate over a 20-year operational life.
Why is this project significant?
This project is positioned to become the first commercial Direct Lithium Extraction operation in the United States, representing a major advancement in domestic lithium production for the growing battery and electric vehicle markets.
What are the key financial metrics from the feasibility study?
The study highlights a 20.2% unlevered pre-tax internal rate of return, average operating costs of $4,516 per tonne, and total capital expenditures of $1.45 billion for the project development.
Who is involved in this joint venture?
The project is being developed through Smackover Lithium, a 55:45 joint venture between Standard Lithium Ltd. (55%) and global energy leader Equinor (45%).
When is the project expected to begin construction and production?
Construction is expected to begin in 2026 following a final investment decision, with first production targeted for 2028.
Where is the South West Arkansas project located?
The project is located in southern Arkansas within the Smackover Formation, which is described as a world-class lithium brine asset.
What technology will be used for lithium extraction?
The project will utilize Direct Lithium Extraction (DLE) technology combined with purification processes, which Standard Lithium aims to apply for sustainable, commercial-scale lithium production.
How can I access more detailed information about this announcement?
The full press release can be viewed at https://ibn.fm/ojjHW, and the latest news and updates relating to SLI are available in the company’s newsroom at https://ibn.fm/SLI.
What is Standard Lithium’s overall business focus?
Standard Lithium is a near-commercial lithium development company focused on sustainable development of large, high-grade lithium-brine properties in the United States, prioritizing projects with high-grade resources, robust infrastructure, skilled labor, and streamlined permitting.
What other projects does Standard Lithium have besides the South West Arkansas project?
In addition to the South West Arkansas project, Standard Lithium is actively advancing a promising lithium brine resource position in East Texas, with all projects located within the Smackover Formation lithium brine asset.
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