Standard Lithium and Equinor Finalize $225 Million Grant from the U.S. Department of Energy for the South West Arkansas Project

­Standard Lithium Ltd. (“Standard Lithium”), a leading near-commercial lithium developer, and Equinor, a global energy leader, today announced that its jointly-owned U.S. subsidiary, SWA Lithium LLC, has closed the US$225 million grant from the U.S. Department of Energy’s (“DOE”) Office of Manufacturing & Energy Supply Chains. The grant will support construction of Phase 1 of the South West Arkansas (“SWA”) project.

“Closing of the DOE grant is a testament to the caliber of the South West Arkansas project,” said David Park, CEO and Director of Standard Lithium. “SWA is one of the highest-grade lithium brine projects in North America, and through the use of DLE technology, a near-term, sustainable opportunity to help secure America’s domestic lithium supply chain.”

“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,” says Hege Skryseth, Executive Vice President for Technology, Digital & Innovation in Equinor.

The SWA project is expected to be one of the world’s first commercial-scale Direct Lithium Extraction (“DLE”) facilities. The project, located in Lafayette and Columbia Counties, Arkansas, is expected to produce 45,000 tonnes per annum of lithium carbonate, developed in two phases of 22,500 tonnes each. It is being developed in partnership with global energy leader Equinor, with ownership shared at 55% by Standard Lithium and 45% by Equinor.

A Definitive Feasibility Study and Front-End Engineering Design for the Project are currently underway. The partnership is targeting a Final Investment Decision (“FID”) by the end of 2025 with Phase 1 production commencing as soon as 2028.

As part of receiving the grant, the Project is subject to the National Environmental Policy Act (“NEPA”) and will require completion of an Environmental Assessment (“EA”). The Company expects to complete the EA this year, prior to reaching FID. More information, including the opportunity for public comment and review, will be shared as the process progresses beginning in 2025.

David Park stated, “We’re committed to ensuring this project is a win for the Lewisville and southwest Arkansas communities. For us that means adding approximately 100 direct, long-term jobs and 300 construction jobs, with a commitment to hire at least 40% of the operations workforce locally.”

Additionally, this Project will further benefit the local community through infrastructure improvements, healthcare initiatives, educational partnerships, and workforce development programs.