Standard Lithium Joint Venture Files Definitive Feasibility Study for Arkansas Lithium Project

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 project, outlining a significant development in domestic lithium production. The study details annual production of 22,500 tonnes of battery-grade lithium carbonate over a 20-year operational life, representing a major step toward establishing domestic lithium supply chains critical for electric vehicle batteries and energy storage systems.

The financial metrics outlined in the study demonstrate strong project economics, with a 20.2% unlevered pre-tax internal rate of return and average operating costs of $4,516 per tonne. Total capital expenditures are projected at $1.45 billion for the development of what would become the first commercial Direct Lithium Extraction operation in the United States. This project timeline anticipates construction beginning in 2026 following a final investment decision, with first production targeted for 2028.

The significance of this development extends beyond the immediate financial metrics. As the United States seeks to establish domestic supply chains for critical minerals essential to the energy transition, this project represents a substantial step toward reducing reliance on foreign lithium sources. The project's location in the Smackover Formation, recognized as a world-class lithium brine asset, provides strategic advantages in terms of resource quality and existing infrastructure.

The joint venture partnership with global energy leader Equinor brings substantial technical and financial resources to the project, enhancing its prospects for successful development. The timing coincides with growing demand for lithium from electric vehicle manufacturers and energy storage providers, creating favorable market conditions for domestic production. Additional information about the company's developments can be found at https://ibn.fm/SLI.

For the broader industry, the successful implementation of Direct Lithium Extraction technology at commercial scale could establish new standards for lithium production efficiency and environmental performance. Traditional lithium extraction methods often face environmental challenges, making the advancement of DLE technology particularly significant for sustainable mineral development. The project's progression through the feasibility stage indicates maturation of both the resource and the extraction technology.

The development timeline positions the project to begin production as demand for domestic lithium sources is expected to accelerate, driven by federal policies supporting domestic supply chain development and growing consumer adoption of electric vehicles. The project's location in Arkansas provides access to established infrastructure and skilled labor, factors that contributed to its selection for development. The full details of the announcement are available at https://ibn.fm/ojjHW.