Standard Lithium (TSX-V:SLI) and global energy company Equinor (NYSE:EGNR) have secured a US$225 million ($362.33 million) grant from the US Department of Energy’s Office of Manufacturing and Energy Supply Chains.
The grant, which is provided to the companies’ jointly-owned subsidiary SWA Lithium, will support phase-one construction activities at the South West Arkansas (SWA) Project in the US.
“The US Department of Energy’s support demonstrates the project’s maturity and strengthens its financial robustness as we work towards a final investment decision,” Equinor Executive Vice President Hege Skryseth says.
Standard Lithium CEO David Park says the SWA project is one of the highest-grade lithium brine projects in North America and is a near-term sustainable opportunity to help secure the US’ domestic lithium supply chain.
The South West Arkansas Project is expected to be among the world’s first commercial-scale direct lithium extraction facilities. The project is expected to produce 45,000 tonnes per year of lithium carbonate, developed in two phases of 22,500 tonnes each.
A Definitive Feasibility Study and front-end engineering design for the project are underway. Standard Lithium and Equinor are targeting a final investment decision (FID) by the end of this year, with phase-one production forecast to begin in 2028.
As part of receiving the grant, the SWA project is subject to the National Environmental Policy Act and will require completion of an environmental assessment.
Standard Lithium expects to complete the assessment this year, prior to reaching FID.
“We’re committed to ensuring this project is a win for the Lewisville and southwest Arkansas communities,” Park says.
“For us that means adding approximately 100 direct, long-term jobs and 300 construction jobs, with a commitment to hire at least 40% of the operations workforce locally.”
The SWA Project is being developed in partnership with Equinor which holds a 45% interest, while Standard Lithium holds the remaining 55%.
Standard Lithium is a lithium developer focused on its portfolio of brine projects in the US.
Equinor has a project portfolio that comprises oil and gas, as well as renewables and low-carbon solutions. The company aims to become a net zero energy company by 2050.
Write to Aaliyah Rogan at Mining.com.au
Images: Standard Lithium
