Standard Lithium, in partnership with Equinor, has achieved a critical regulatory milestone for its South West Arkansas Project after receiving unanimous approval from the Arkansas Oil and Gas Commission for the Reynolds Unit. The 20,854-acre brine unit represents a substantial step toward commercial lithium production in the United States.
The project aims to produce 22,500 tonnes of battery-quality lithium carbonate annually, with commercial output targeted for 2028. This approval positions the joint venture closer to its final investment decision and royalty rate determination, expected in May.
The development is significant for the emerging domestic lithium supply chain, which is crucial for supporting the growing electric vehicle and renewable energy markets. By advancing a large-scale lithium extraction project in Arkansas, Standard Lithium is contributing to reducing international dependency on lithium imports and supporting domestic battery manufacturing capabilities.
The project leverages the Smackover Formation, a world-class lithium-brine asset, and utilizes a direct lithium extraction process designed to be more sustainable and efficient compared to traditional lithium production methods. This approach could set a new standard for environmentally conscious mineral extraction in the United States.
With global demand for lithium projected to increase dramatically due to electrification efforts, this project represents a strategic advancement in securing a stable, domestic lithium supply for emerging clean energy technologies.
