Standard Lithium Ltd., a near-commercial lithium developer, and Equinor, a global energy provider, recently announced that their jointly owned US subsidiary, SWA Lithium LLC, has closed a US $225 million grant from the US 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 — expected to be one of the world’s first commercial-scale direct lithium extraction (DLE) facilities. Located in Lafayette and Columbia Counties, Arkansas, the project aims to produce 45,000 tonnes per annum of lithium carbonate, developed in two phases of 22,500 tonnes each.
With lithium carbonate being a critical material for EV battery production, this project represents a significant step in strengthening the domestic supply chain for electric vehicles.
The SWA project’s definitive feasibility study and front-end engineering design are currently underway, with a final investment decision (FID) targeted for the end of 2025 and Phase 1 production expected to begin as soon as 2028. As part of receiving the grant, the project is also subject to the National Environmental Policy Act (NEPA) and requires completion of an Environmental Assessment (EA), which the company expects to finalize this year before reaching FID.
More information, including opportunities for public comment and review, will be shared as the process progresses beginning in 2025.
David Park, CEO and director of Standard Lithium, emphasized the project’s local economic impact, stating that it will add approximately 100 direct, long-term jobs and 300 construction jobs, with a commitment to hiring at least 40% of the operations workforce locally.
Beyond job creation, the project will contribute to infrastructure improvements, healthcare initiatives, educational partnerships, and workforce development programs, further supporting the regional economy.
Filed Under: Batteries, Technology News