U.S. Department of Energy Selects Standard Lithium and Equinor for Award Negotiation of Up to $225 Million for South West Arkansas Project
September 20 2024 - 5:11AM
UK Regulatory
U.S. Department of Energy Selects Standard Lithium and Equinor for
Award Negotiation of Up to $225 Million for South West Arkansas
Project
LEWISVILLE, Ark., Sept. 20, 2024 (GLOBE
NEWSWIRE) -- Standard Lithium Ltd. (“Standard
Lithium”) (TSXV:SLI) (NYSE:A:SLI), a leading near-commercial
lithium development and technology company and Equinor, a global
energy leader, today announced that its jointly-owned U.S.
subsidiary, SWA Lithium LLC has been selected for up to US$225
million award negotiation from the U.S. Department of Energy
(“DOE”). This selection, overseen by the DOE's Office of
Manufacturing and Energy Supply Chains (MESC), is one of the
largest ever awarded to a U.S. critical minerals project and is
part of the second wave of funding under the Infrastructure
Investment and Jobs Act aimed at expanding domestic manufacturing
of all segments of the battery supply chain and increasing
production of critical minerals in the U.S. The provisional grant
is dependent on completing successful final negotiations with the
DOE.
Key Highlights:
- Conditional
Award: The $225 million funding by the DOE will support the
construction of the Central Processing Facility (“CPF”) for Phase 1
of the South West Arkansas project. The CPF for Phase 1 is being
designed to annually produce 22,500 tonnes of battery-quality
lithium carbonate, utilizing Direct Lithium Extraction (“DLE”)
technology. The U.S. Government's significant cost share
demonstrates its commitment to the project, underscoring the
strategic importance of developing a domestic supply chain for
critical minerals.
- Project
Development and Expansion: The South West Arkansas project, located
in Lafayette and Columbia Counties, Arkansas, is being developed in
partnership with Equinor, with ownership shared at 55% by Standard
Lithium and 45% by Equinor. The project’s design is being updated
from its original Preliminary Feasibility Study (PFS), and now
targets a larger total output of 45,000 tonnes per annum of lithium
carbonate, to be developed in two phases of 22,500 tonnes each. A
Definitive Feasibility Study (DFS) and Front-End Engineering Design
(FEED) are currently underway to support this expansion.
- Location and
Community Impact: The SWA project’s DLE and lithium carbonate
facilities are planned to be located on a 118-acre property in
rural Lafayette County, approximately 7 miles south of Lewisville,
Arkansas. The brine unit that will source lithium-bearing brine for
the project facilities spans lands in Lafayette and Columbia
Counties. In addition to creating up to 300 construction and 100
direct jobs, the project will significantly benefit the local
community through infrastructure improvements, community health
initiatives, educational partnerships, and workforce development
programs.
Standard Lithium’s CEO David
Park stated: “The significant cost share from the U.S.
Government demonstrates their continued support for investing in
secure and sustainable supply chains of domestic lithium
production. This decision by the Department of Energy validates the
caliber of the project we are building through our de-risked
approach to project development, strong partnerships, methodical
testing, and purpose-built processes tailored to meet the specific
demands of large-scale lithium production in the Smackover
Formation. Moreover, it reflects the incredibly talented and
dedicated team we have built to execute this vision, and most
importantly the relationships we have built in our community and
across the state to ensure this is a win for Arkansas.”
Allison Thurmond, Vice President of US
Lithium at Equinor, said “The U.S. Department of
Energy’s support for the South West Arkansas project demonstrates
how important lithium is to America’s energy transition. This award
underscores the commercial readiness of our projects and the
strength of our partnership. We look forward to working with the
U.S. Department of Energy and alongside local communities in
southwest Arkansas to develop this critical mineral and build the
next generation of lithium production."
Dr. Andy Robinson, President and COO of
Standard Lithium, added, “We are honored to have been
selected for this significant grant from the U.S. Department of
Energy. This funding is a strong endorsement of the South West
Arkansas project and our efforts to develop a secure and
sustainable domestic lithium supply chain. The grant will enable us
to accelerate the development of this world-class resource and
position the project as a cornerstone of the U.S. battery materials
industry.”
About Standard Lithium Ltd.
Standard Lithium is a leading near-commercial
lithium development company focused on the sustainable development
of a portfolio of large, high-grade lithium-brine properties in the
United States. The Company prioritizes projects characterized by
the highest quality resources, robust infrastructure, skilled
labor, and streamlined permitting. Standard Lithium aims to achieve
sustainable, commercial-scale lithium production via the
application of a scalable and fully integrated Direct Lithium
Extraction (“DLE”) and purification process. The Company’s flagship
projects are located in the Smackover Formation, a world-class
lithium brine asset, focused in Arkansas and Texas. In partnership
with global energy leader Equinor ASA, Standard Lithium is
advancing the South West Arkansas project, a greenfield project
located in southern Arkansas, and actively exploring promising
lithium brine prospects in East Texas. Additionally, the Company is
advancing the Phase 1A project in partnership with LANXESS
Corporation, a brownfield development project located in southern
Arkansas. Standard Lithium also holds an interest in certain
mineral leases in the Mojave Desert in San Bernardino County,
California.
Standard Lithium is jointly listed on the TSX
Venture Exchange and the NYSE American under the trading symbol
“SLI”. Please visit the Company’s website at
https://www.standardlithium.com.
About Equinor
Equinor is an international energy company
committed to long-term value creation in a low-carbon future.
Equinor’s portfolio of projects encompasses oil and gas, renewables
and low-carbon solutions, with an ambition of becoming a net-zero
energy company by 2050. Headquartered in Norway, Equinor is the
leading operator on the Norwegian continental shelf and is present
in around 30 countries worldwide. Our partnership with Standard
Lithium to mature DLE projects builds on our broad US energy
portfolio of oil and gas, offshore wind, low carbon solutions and
battery storage projects.
For more information on Equinor in the US,
please visit: Equinor in the US - Equinor
About DOE’s Office of Manufacturing and
Energy Supply Chains (MESC)
MESC plays a critical and unique role in
catalyzing investments in America’s energy future to support the
re-shoring, skilling, and scaling of U.S. manufacturing across
energy supply chains. MESC serves as the frontline of clean energy
deployment and accelerates America’s transition to a resilient,
equitable energy future through data-driven investments in
manufacturing capacity and workforce development. Learn more at
www.energy.gov/mesc or LinkedIn.
Neither the TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in policies
of the TSX Venture Exchange) accepts responsibility for the
adequacy or accuracy of this release.
This news release may contain certain “Forward-Looking
Statements” within the meaning of the United States Private
Securities Litigation Reform Act of 1995 and applicable Canadian
securities laws. When used in this news release, the words
“anticipate”, “believe”, “estimate”, “expect”, “target, “plan”,
“forecast”, “may”, “schedule” and other similar words or
expressions identify forward-looking statements or information.
These forward-looking statements or information may relate to
intended development timelines, future prices of commodities,
accuracy of mineral or resource exploration activity, reserves or
resources, regulatory or government requirements or approvals, the
reliability of third party information, continued access to mineral
properties or infrastructure, fluctuations in the market for
lithium and its derivatives, changes in exploration costs and
government regulation in Canada and the United States, and other
factors or information. Such statements represent the Company’s
current views with respect to future events and are necessarily
based upon a number of assumptions and estimates that, while
considered reasonable by the Company, are inherently subject to
significant business, economic, competitive, political and social
risks, contingencies and uncertainties. Many factors, both known
and unknown, could cause results, performance or achievements to be
materially different from the results, performance or achievements
that are or may be expressed or implied by such forward-looking
statements. The Company does not intend, and does not assume any
obligation, to update these forward-looking statements or
information to reflect changes in assumptions or changes in
circumstances or any other events affecting such statements and
information other than as required by applicable laws, rules and
regulations.
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