Equinor and Standard Lithium Secure $225 Million for Arkansas Lithium Project

Equinor Energy and its operating partner, Standard Lithium, have received a $225 million grant from the U.S. Department of Energy (DOE) to support the development of the South West Arkansas (SWA) lithium project. The funding, provided by the DOE’s Office of Manufacturing and Energy Supply Chains, will aid in constructing a processing plant that utilizes direct lithium extraction (DLE) technology to extract lithium from deep underground saltwater reservoirs for battery production.

Equinor entered the project in May 2024, acquiring a 45% stake in two lithium companies operating in Southwest Arkansas and East Texas from Standard Lithium. The SWA project’s infrastructure will be based in Lafayette County, about seven miles south of Lewisville, Arkansas, with lithium-rich brine sourced from units spanning Lafayette and Columbia counties within the Smackover formation. The project boasts high-grade lithium brine resources, with concentrations reaching up to 597 mg/L and an average of 437 mg/L.

The project's scope is being expanded from its initial preliminary feasibility study. The updated plan targets a total output of 45,000 tonnes per year of lithium carbonate, split into two phases of 22,500 tonnes each. A definitive feasibility study and front-end engineering design (FEED) study are underway to advance the project toward a final investment decision (FID), which the partnership aims to reach by late 2025. Phase 1 production is expected to begin in 2028.

As a condition of the DOE grant, the SWA project must comply with the National Environmental Policy Act, requiring an Environmental Assessment before reaching FID. This assessment is expected to be completed within the year.