Standard Lithium Collaborates with Equinor for Major Project Funding

Standard Lithium Partners with Equinor for U.S. Project Funding

LEWISVILLE, Ark. — Standard Lithium Ltd. (TSXV:SLI) (NYSE:A:SLI), an innovative lithium development and technology firm, has made headlines with its collaboration with Equinor, a global leader in energy. The duo recently announced that their joint venture, SWA Lithium LLC, was selected for potential negotiations over a substantial funding award of up to $225 million from the U.S. Department of Energy (DOE). This remarkable opportunity comes as part of the broader initiative to enhance the domestic production of essential minerals crucial for battery manufacturing.

Key Steps in the Funding Process

This noteworthy selection is managed by the DOE's Office of Manufacturing and Energy Supply Chains (MESC). This selection underscores the growing recognition of the importance of securing a reliable domestic supply chain for critical minerals. The anticipated grant represents one of the most significant contributions made by the DOE toward U.S. critical minerals projects.

Conditional Award and Project Development

The conditional award of $225 million is intended to facilitate the construction of the Central Processing Facility (CPF) for Phase 1 of the South West Arkansas project. This facility is designed to produce an impressive 22,500 tonnes of battery-quality lithium carbonate per year, employing advanced Direct Lithium Extraction (DLE) technology. The U.S. Government’s investment highlights its commitment to bolstering domestic lithium production.

Project Expansion Goals

The South West Arkansas project, while providing cutting-edge lithium extraction technology, is continually evolving. The project, designed in partnership with Equinor, is owned predominantly by Standard Lithium at 55%, with Equinor holding a 45% stake. Recent updates from the Preliminary Feasibility Study (PFS) indicate a revised target of 45,000 tonnes annually, developed across two distinct phases, each producing 22,500 tonnes of lithium carbonate.

Community Benefits and Economic Impact

Selected for its strategic location in Lafayette and Columbia Counties, the project is poised to bring significant economic benefits to the local communities. Expected improvements include the creation of approximately 300 construction jobs and 100 direct employment opportunities, alongside vital community enhancements such as infrastructure upgrades, educational partnerships, and health initiatives.

Insights from the Leadership

David Park, CEO of Standard Lithium, expressed optimism regarding the U.S. Government's financial backing. He noted that this substantial funding reflects their commitment to building secure and sustainable domestic supply chains for lithium production. This backing not only validates the project’s credibility but also emphasizes the strategic partnerships and community relationships cultivated throughout the development process.

Allison Thurmond, Vice President of US Lithium at Equinor, emphasized the importance of lithium for America's transition to sustainable energy. She reiterated that the recognition from the DOE reinforces their project’s commercial viability and their dedication to working closely with local communities.

The Vision for Sustainable Lithium Production

Dr. Andy Robinson, President and COO of Standard Lithium, highlights the grant’s significance in accelerating the advancement of the project and establishing a robust lithium supply chain. The initiative aims not just to bolster production but to solidify the region’s role in the broader battery materials industry.

About Standard Lithium and Equinor

Standard Lithium stands out for its pioneering efforts in sustainable lithium extraction. The company emphasizes projects with high-grade lithium-brine resources and focuses on the most efficient extraction methods. Their flagship ventures are situated in the Smackover Formation, a renowned lithium-rich region.

Equinor, on the other hand, is dedicated to generating long-term value through sustainable practices in energy. With a diverse portfolio that includes oil, gas, renewables, and low-carbon solutions, the company is committed to being a frontrunner in the transition toward a low-carbon future.

Frequently Asked Questions

What is the purpose of the funding from the U.S. Department of Energy?

The funding is intended to support the construction of the Central Processing Facility for lithium carbonate production in Arkansas.

How much lithium carbonate will the project produce annually?

The project aims to produce 22,500 tonnes of battery-quality lithium carbonate each year in its first phase, with plans to double that output in later phases.

What are the projected economic benefits for the local community?

The project is expected to create about 400 jobs and promote local infrastructure, health, and education initiatives.

What companies are involved in the South West Arkansas project?

The South West Arkansas project is a collaborative effort between Standard Lithium and Equinor.

What technologies are being implemented in the lithium extraction process?

The project utilizes Direct Lithium Extraction (DLE) technology to enhance the efficiency of lithium extraction from brine sources.

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