Standard Lithium and Equinor Joint Venture Clears Major Regulatory Hurdle for Arkansas Lithium Project
TL;DR
Standard Lithium's regulatory approval secures exclusive access to 20,854 acres of brine resources, positioning the company to capitalize on growing battery material demand starting in 2028.
The approval finalizes unitization for Standard Lithium's SWA Project, establishing a 2.5% lithium royalty framework and securing brine production rights across 20,854 acres in Arkansas.
This project advances sustainable lithium production for electric vehicle batteries, supporting the transition to cleaner transportation and reducing carbon emissions globally.
Standard Lithium achieved the first-ever lithium royalty approval in Arkansas history, pioneering new regulatory frameworks for domestic battery material production.
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The Arkansas Oil and Gas Commission has granted unanimous approval to Standard Lithium Ltd. (NYSE American: SLI) and Equinor's joint venture for their Integration Application covering the Reynolds Brine Unit, the site of their flagship South West Arkansas Project. This regulatory milestone ensures access to the 20,854-acre brine production area while protecting mineral owners' rights and de-risking the project's resource base.
The approval represents a significant step forward for the Smackover Lithium joint venture, which is structured as a 55:45 partnership between Standard Lithium and global energy leader Equinor. The project previously received unanimous AOGC approval for unitization and established a 2.5% lithium royalty—the first of its kind in Arkansas—demonstrating continued regulatory support for lithium development in the state.
The South West Arkansas Project plans to produce 22,500 tonnes of battery-quality lithium carbonate annually beginning in 2028, positioning it as a potentially significant contributor to the domestic lithium supply chain. This production capacity could help meet growing demand from electric vehicle manufacturers and energy storage companies seeking North American sources of critical battery materials.
Standard Lithium describes itself as a leading near-commercial lithium development company focused on sustainable development of large, high-grade lithium-brine properties in the United States. The company prioritizes projects with high-grade resources, robust infrastructure, skilled labor, and streamlined permitting. Additional information about the company is available in their newsroom at https://ibn.fm/SLI.
The joint venture's progress comes amid increasing global competition for lithium resources and growing emphasis on securing domestic supply chains for critical minerals. The full press release detailing the regulatory approval can be viewed at https://ibn.fm/iYLV7. The project's location in the Smackover Formation, recognized as a world-class lithium brine asset spanning Arkansas and Texas, provides geological advantages for brine extraction operations.
This regulatory clearance represents one of the final major hurdles before construction and development can proceed toward the planned 2028 production timeline. The integration approval specifically addresses how brine resources will be managed across the extensive production area, providing certainty for both project developers and mineral rights holders in the region.
Curated from InvestorBrandNetwork (IBN)
