In May 2024, a significant partnership emerged in the energy sector as Equinor joined forces with Standard Lithium. This strategic move saw Equinor acquire a 45% stake in two promising lithium companies situated in Southwest Arkansas and East Texas. This collaboration is set to bolster the domestic lithium supply chain, a critical component for the burgeoning electric vehicle and battery storage industries. The project has also received a substantial boost from the U.S. Department of Energy (DOE), highlighting its national importance.
A substantial USD 225 million funding commitment from the DOE’s Office of Manufacturing and Energy Supply Chains is earmarked to support the construction of a state-of-the-art processing facility for the Southwest Arkansas (SWA) project. This financial backing underscores the project’s viability and its crucial role in securing a domestic source of lithium. The initial phase of the SWA project is ambitiously targeting an annual production of 22,500 tonnes of lithium carbonate. This output is specifically intended for use in battery production, addressing a key bottleneck in the electric vehicle manufacturing process. For context, while discussions about currency conversions like 225 Euro In Usd are common in global finance, the direct investment in this project is a clear indication of the US commitment to securing its own lithium resources.
Hege Skryseth, executive vice president for Technology, Digital & Innovation at Equinor, emphasized the significance of the DOE’s support. “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. We look forward to working with Standard Lithium and alongside the local community to enhance the US lithium supply chain by deploying innovative technology,” Skryseth stated. Her words highlight the collaborative spirit and technological innovation driving this project forward.
Lithium is classified as an essential mineral due to its indispensable role in meeting the rapidly increasing demand for electric vehicles and large-scale battery energy storage solutions. The method employed in this project, Direct Lithium Extraction (DLE), is particularly noteworthy. DLE is a cutting-edge technique designed to extract lithium from lithium-rich saltwater sources, typically found in deep underground reservoirs. Importantly, these saltwater sources are unsuitable for drinking or agricultural purposes, making DLE an environmentally sound approach to lithium production.
The project’s design is currently undergoing updates from its original Preliminary Feasibility Study (PFS) to optimize its output and efficiency. The revised target now aims for a larger total production capacity of 45,000 tonnes per annum of lithium carbonate. This expanded capacity is planned to be developed in two distinct phases, each targeting 22,500 tonnes annually. To ensure the project’s successful execution, a Definitive Feasibility Study (DFS) and a Front-End Engineering Design (FEED) study are currently in progress. These studies are crucial steps in maturing the project and paving the way for a final investment decision (FID).
The operational facilities for the SWA project are strategically planned to be located in Lafayette County, Arkansas, approximately 7 miles south of Lewisville. The brine unit, which will supply the lithium-bearing brine essential for the project, extends across both Lafayette and Columbia counties. Anticipated to bring substantial economic benefits to the region, the project is projected to create up to 300 construction jobs and 100 direct permanent positions, pending a positive final investment decision. Beyond direct employment, the project is also expected to contribute to the local community through various initiatives, including infrastructure improvements, healthcare advancements, educational partnerships, and workforce development programs, fostering long-term sustainable growth in the region.
