DOE Awards $225 Million Grant for Arkansas Lithium Project

The U.S. Department of Energy awarded $225 M to the Southwest Arkansas lithium project, a Standard Lithium and Equinor partnership. The funding supports a processing facility using sustainable Direct Lithium Extraction, aiming to produce 45 000 tonnes annually and boost domestic EV battery supply.

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On January 16, 2025, the U.S. Department of Energy (DOE) finalized a $225 million grant to support the Southwest Arkansas (SWA) lithium project, a partnership between Standard Lithium and Equinor. This funding, from the DOE’s Office of Manufacturing and Energy Supply Chains, will facilitate the construction of a processing facility to enhance domestic lithium production.

In May 2024, Equinor acquired a 45% interest in two of Standard Lithium’s projects in Southwest Arkansas and East Texas. The SWA project aims to produce 22,500 tonnes of lithium carbonate annually in its first phase, essential for battery manufacturing in the growing electric vehicle (EV) industry.

“The U.S. Department of Energy’s support demonstrates the project’s maturity and strengthens its financial robustness as we work towards a final investment decision,” said Hege Skryseth, Executive Vice President for Technology, Digital & Innovation at Equinor. “We look forward to working with Standard Lithium and the local community to enhance the U.S. lithium supply chain by deploying innovative technology.”

Lithium is vital for batteries used in electric vehicles and energy storage systems. The SWA project employs Direct Lithium Extraction (DLE), extracting lithium from deep underground saltwater reservoirs unsuitable for drinking or agriculture, offering an environmentally considerate option.

The project design is being updated from its original Preliminary Feasibility Study, now targeting a total output of 45,000 tonnes per annum of lithium carbonate in two phases of 22,500 tonnes each. A Definitive Feasibility Study and Front-End Engineering Design are underway to advance toward a final investment decision.

The SWA facilities are planned for Lafayette County, about seven miles south of Lewisville, Arkansas, with lithium-bearing brine sourced from Lafayette and Columbia counties. Pending a positive investment decision, the project is expected to create up to 300 construction jobs and 100 direct jobs, benefiting the community through infrastructure improvements and workforce development programs.

Equinor has been testing DLE technologies since 2018 to scale the extraction process and convert subsurface brines into battery-grade lithium chemicals. In 2021, Equinor Ventures invested in Lithium de France, developing DLE and geothermal projects in France, demonstrating commitment to advancing lithium extraction technologies.

The DLE process involves pre-treatment, extraction, concentration, purification, and crystallization, offering a more sustainable and efficient method compared to traditional mining practices.

Source: Equinor

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