The joint venture between Standard Lithium Ltd. (NYSE American: SLI) and Equinor has filed the Definitive Feasibility Study for the South West Arkansas lithium project, outlining plans for annual production of 22,500 tonnes of battery-grade lithium carbonate over a 20-year operational life. The study reveals strong financial metrics including a 20.2% unlevered pre-tax internal rate of return, average operating costs of $4,516 per tonne, and total capital expenditures of $1.45 billion. This project represents a significant milestone for the United States lithium industry as it is positioned to become the first commercial Direct Lithium Extraction operation in the country.
The development comes at a critical time when domestic production of battery materials has become a national priority for electric vehicle manufacturing and energy storage applications. The project timeline indicates construction could begin in 2026 following a final investment decision, with first production targeted for 2028. Standard Lithium is focused on the sustainable development of large, high-grade lithium-brine properties in the United States, with particular emphasis on projects characterized by robust infrastructure, skilled labor availability, and streamlined permitting processes.
The company's partnership with global energy leader Equinor combines lithium development expertise with energy industry experience, creating a strong foundation for project execution. The South West Arkansas project is located within the Smackover Formation, recognized as a world-class lithium brine asset spanning Arkansas and Texas. This geological formation provides the high-grade resources necessary for economic lithium production using Standard Lithium's scalable and fully integrated DLE and purification process. The company maintains additional information in its newsroom available at https://ibn.fm/SLI.
The successful development of this project would establish a major new source of domestic lithium production, reducing reliance on imported materials and supporting the growing electric vehicle and renewable energy storage markets in North America. With the definitive feasibility study now filed, the joint venture moves closer to making critical investment decisions that could transform the United States into a significant lithium producer within the global battery supply chain.
