Summary
- SWA Lithium closed a $225 million grant from the US Department of Energy for construction of Phase 1 of the South West Arkansas lithium project
- The DLE facility in Arkansas is expected to produce 45,000 tonnes per year of lithium carbonate
- Standard Lithium owns 55% of the joint venture, Equinor owns 45%
- A feasibility study and engineering design are underway with a potential investment decision by the end of 2025
- The project aims to secure America’s domestic lithium supply chain using DLE technology
Article
SWA Lithium, a joint venture between Standard Lithium and Equinor, has secured a $225 million grant from the US Department of Energy’s Office of Manufacturing and Energy Supply Chains for the construction of Phase 1 of the South West Arkansas lithium project. The project will consist of a commercial-scale Direct Lithium Extraction (DLE) facility in Lafayette and Columbia Counties, Arkansas, with a production capacity of 45,000 tonnes per year of lithium carbonate in two phases of 22,500 tonnes each.
Standard Lithium owns 55% of the joint venture, while Equinor owns 45%. Currently, a definitive feasibility study (DFS) and front-end engineering design (FEED) are underway. The companies are aiming to make a final investment decision (FID) by the end of 2025 and commence production for Phase 1 in 2028. David Park, the CEO and Director of Standard Lithium, highlighted the high-grade nature of the SWA lithium project in North America and the potential for using DLE technology to help secure America’s domestic lithium supply chain in the near future.
The grant from the US Department of Energy’s Office of Manufacturing and Energy Supply Chains is instrumental in supporting the construction of the SWA lithium project. The DLE facility is expected to play a significant role in enhancing the domestic lithium supply chain in the US. With the increasing demand for lithium in various industries, including electric vehicles and renewable energy storage, the SWA lithium project aims to meet these needs sustainably and efficiently.
As one of the highest-grade lithium brine projects in North America, SWA presents a valuable opportunity to contribute to the growing demand for lithium. By utilizing DLE technology, the project aims to extract lithium in an environmentally friendly and cost-effective manner. The partnership between Standard Lithium and Equinor positions SWA to be a key player in the lithium market and support the transition to a more sustainable energy future.
The development of Phase 1 of the SWA lithium project is an important step towards achieving a more secure and reliable domestic lithium supply chain in the US. By producing lithium carbonate at a commercial scale, the project aims to meet the increasing demand for lithium in a variety of industries. With the support of the grant from the US Department of Energy, SWA Lithium is well-positioned to become a significant player in the lithium market and contribute to the growth of the domestic energy storage industry.
Overall, the SWA lithium project represents a strategic investment in the future of the US energy sector. By leveraging innovative technologies and sustainable practices, SWA aims to establish itself as a reliable and efficient supplier of lithium in the North American market. With Phase 1 production expected to commence in 2028, the project is on track to meet the growing demand for lithium and support the transition towards a cleaner and more sustainable energy landscape.
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