Equinor and Standard Lithium Secure $225 Million for US Lithium Extraction Project

Equinor

Norwegian energy giant Equinor and Canadian firm Standard Lithium have received a $225 million grant from the US Department of Energy (DOE). The grant aims to establish a commercial-scale direct lithium extraction (DLE) facility in Arkansas, a critical step toward enhancing domestic lithium carbonate production.

The facility is part of the companies' joint South West Arkansas (SWA) project. Funds will specifically support constructing a processing plant designed to produce lithium carbonate, a key component in battery manufacturing.

Production Timeline and Capacity

Equinor and Standard Lithium anticipate making a final investment decision on the SWA project by the end of 2025. Once approved, the project's first phase of production is set to begin in 2028. Upon completion, the facility will boast an annual production capacity of 45,000 tonnes of lithium carbonate, significantly boosting the US lithium supply chain for battery production.

Rising Interest in Direct Lithium Extraction (DLE)

Direct lithium extraction has become increasingly attractive due to its environmental and operational advantages over traditional brine evaporation methods. Despite brine reservoirs containing approximately 60% of global lithium reserves, conventional evaporation processes only contribute about 35% of lithium production. DLE technology offers a more efficient and sustainable solution, prompting major industry players like Equinor and Standard Lithium to heavily invest in this emerging method.

In May 2024, Equinor committed up to $160 million for a 45% stake in two of Standard Lithium’s projects, including the SWA initiative. Their collaboration commenced operations at a pilot DLE plant in December 2024, marking a significant milestone toward achieving their ambitious production goals.