Standard Lithium and Equinor Joint Venture Files Definitive Feasibility Study for South West Arkansas Lithium Project
TL;DR
Standard Lithium's South West Arkansas project offers investors a 20.2% unlevered pre-tax IRR advantage through first US commercial Direct Lithium Extraction operation.
The Definitive Feasibility Study outlines 22,500 tonnes annual lithium carbonate production over 20 years with $4,516 per tonne operating costs and $1.45 billion capital expenditure.
This sustainable lithium production will support electric vehicle adoption and reduce carbon emissions, creating a cleaner energy future for generations to come.
Standard Lithium's Arkansas project will become America's first commercial Direct Lithium Extraction facility, pioneering new domestic battery material production starting 2028.
Standard Lithium Ltd. (NYSE American: SLI) announced that Smackover Lithium, its 55:45 joint venture with Equinor, has filed the Definitive Feasibility Study for the South West Arkansas lithium project. The comprehensive study outlines plans for annual production of 22,500 tonnes of battery-grade lithium carbonate over a 20-year operational life, establishing significant implications for the domestic lithium supply chain and electric vehicle industry.
The economic analysis reveals a robust 20.2% unlevered pre-tax internal rate of return, indicating strong financial viability for the project. With average operating costs projected at $4,516 per tonne and total capital expenditures estimated at $1.45 billion, the project demonstrates competitive economics in the global lithium market. These financial metrics position the venture favorably against international lithium production operations, potentially reducing dependence on foreign lithium sources.
Positioned to become the first commercial Direct Lithium Extraction operation in the United States, the South West Arkansas project represents a technological milestone in domestic lithium production. The project timeline anticipates construction beginning in 2026 following a final investment decision, with first production targeted for 2028. This strategic timing aligns with growing demand for lithium-ion batteries across electric vehicles, energy storage systems, and consumer electronics.
The joint venture between Standard Lithium and global energy leader Equinor combines specialized lithium development expertise with substantial energy industry experience. This partnership leverages Standard Lithium's focus on sustainable development of large, high-grade lithium-brine properties in the United States, particularly within the Smackover Formation, recognized as a world-class lithium brine asset spanning Arkansas and Texas.
The project's location in southern Arkansas benefits from existing infrastructure, skilled labor availability, and streamlined permitting processes that Standard Lithium prioritizes in its development strategy. The company's approach utilizes a scalable and fully integrated Direct Lithium Extraction and purification process, which offers potential environmental advantages over traditional lithium mining methods.
For investors seeking additional information, the latest news and updates relating to SLI are available in the company's newsroom at https://ibn.fm/SLI. The full press release detailing the feasibility study can be accessed at https://ibn.fm/ojjHW. This development comes as part of specialized financial communications through platforms like InvestorWire, which provides advanced wire-grade press release syndication services for the investment community.
The South West Arkansas project's advancement signals a significant step toward establishing domestic lithium production capacity at commercial scale. As global demand for lithium continues to escalate driven by clean energy transitions, this project could contribute to securing reliable North American lithium supplies while creating economic opportunities in the Arkansas region through job creation and infrastructure development.
Curated from InvestorBrandNetwork (IBN)