Standard Lithium announces several updates
Standard Lithium issued several press releases in January as the landscape for Lithium in this region continues to heat up. Three announcements were made. First, Standard Lithium and Equinor had developed a new name for the Smackover project, second that they finalized the joint $225 million grant from the U.S. Department of Energy for the South West Arkansas Project, and lastly, they had successfully drilled another well and conducted extensive reservoir testing.
In the first release, they announced that Standard Lithium Ltd. (“Standard Lithium”) (TSXV:SLI) (NYSE:A:SLI), a leading near-commercial lithium developer, and Equinor, a global energy leader, announced Smackover Lithium as the new name for their joint venture developing direct lithium extraction (“DLE”) projects in Southwest Arkansas and East Texas.
Smackover Lithium was announced at a community meeting in Lewisville, Arkansas, home of a planned field office and nearby the joint venture’s South West Arkansas (“SWA”) project. The SWA project, located in Lafayette and Columbia counties, is expected to be one of the world’s first commercial-scale DLE facilities.
“Smackover Lithium is a natural fit for the joint venture given the Smackover formation’s prolific resource and our joint venture’s commitment to adding to the incredible legacy of American energy production from this region,” said David Park, CEO of Standard Lithium.
In May 2024, Equinor formed a joint venture with Standard Lithium to advance DLE projects in the Smackover basin, focused on Southwest Arkansas and East Texas. Smackover Lithium is now the external brand for the joint venture and will continue building on Standard Lithium’s work with local communities to enhance economic development and grow educational and workforce opportunities.
“We are excited to be a part of Smackover Lithium, developing critical mineral projects in the Smackover basin and building the next generation of lithium development,” said Allie Kennedy Thurmond, Vice President of US Lithium at Equinor.
In their second announcement on January 16 they said its jointly-owned U.S. subsidiary, SWA Lithium LLC, has closed the US $225 million grant from the U.S. Department of Energy’s (“DOE”) Office of Manufacturing & Energy Supply Chains. The grant will support the construction of Phase 1 of the South West Arkansas (“SWA”) project.
The SWA project is expected to be one of the world’s first commercial-scale Direct Lithium Extraction (“DLE”) facilities. The project, located in Lafayette and Columbia Counties, Arkansas, is expected to produce 45,000 tonnes per annum of lithium carbonate, developed in two phases of 22,500 tonnes each. It is being developed in partnership with global energy leader Equinor, with ownership shared at 55% by Standard Lithium and 45% by Equinor.
David Park CEO and Director of Standard Lithium stated, “We’re committed to ensuring this project is a win for the Lewisville and southwest Arkansas communities. 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.”
Lastly, On January 15, a day before their second press release, they announced “that it has successfully commenced drilling a new well into the Smackover Formation at the Project. The well is currently at a depth of approximately 8,000 feet below the surface (2,438 m), and has a targeted total depth of 9,600 feet (2,926 m). SWA Lithium is also undertaking an extensive field program to re-enter the wells drilled in 2023 to conduct detailed reservoir testing and brine sampling work.”
Standard Lithium continues to name Northeast Texas as a strong potential site in its lithium exploration. “In partnership with global energy leader Equinor ASA, Standard Lithium is advancing the South West Arkansas project, a greenfield project located in southern Arkansas, and actively exploring promising lithium brine prospects in East Texas.”