Standard Lithium and Equinor Joint Venture Receives Arkansas Approval for South West Arkansas Project Integration

Standard Lithium Ltd. (NYSE American: SLI), through its 55:45 joint venture with Equinor known as Smackover Lithium, announced unanimous approval from the Arkansas Oil and Gas Commission (AOGC) for its Integration Application covering the Reynolds Brine Unit, the site of the JV's flagship South West Arkansas (SWA) Project. The decision finalizes a major regulatory milestone, ensuring access to the 20,854-acre brine production area while protecting mineral owners' rights and de-risking the project's resource base. The SWA Project, which plans to produce 22,500 tonnes of battery-quality lithium carbonate annually beginning in 2028, previously received unanimous AOGC approval for unitization and a 2.5% lithium royalty—the first of its kind in Arkansas.

This regulatory approval represents a significant advancement for domestic lithium production capabilities in the United States. The unanimous decision by the Arkansas Oil and Gas Commission provides the joint venture with secured access to the substantial 20,854-acre brine production area, effectively de-risking the project's resource foundation while maintaining protections for mineral owners' interests. The project's location within the Smackover Formation, recognized as a world-class lithium brine asset, positions it as a strategically important development for the North American battery supply chain.

The timing of this approval coincides with growing global demand for lithium, particularly for electric vehicle batteries and energy storage systems. The planned annual production of 22,500 tonnes of battery-quality lithium carbonate represents a substantial contribution to domestic lithium supply, reducing reliance on foreign sources. The project's 2028 production timeline aligns with projected increases in electric vehicle adoption and renewable energy infrastructure development across North America. The joint venture between Standard Lithium and global energy leader Equinor combines technical expertise with substantial resources, enhancing the project's likelihood of successful implementation.

The establishment of a 2.5% lithium royalty structure, the first of its kind in Arkansas, sets a precedent for future lithium development in the state and potentially other regions with similar brine resources. This regulatory framework provides a model for balancing corporate development interests with state revenue generation and mineral owner protections. The project's focus on sustainable development through direct lithium extraction (DLE) and purification processes addresses environmental concerns associated with traditional lithium mining methods. Additional information about the company's developments can be found at https://ibn.fm/SLI, while the full press release details are available at https://ibn.fm/iYLV7.

The South West Arkansas Project's advancement through regulatory approvals demonstrates the increasing importance of domestic critical mineral production for national energy security and economic competitiveness. As battery manufacturing capacity expands in the United States through initiatives like the Inflation Reduction Act, secure and sustainable lithium supply chains become increasingly vital. The project's location in Arkansas leverages existing oil and gas infrastructure and expertise, potentially reducing development costs and timelines compared to greenfield projects in undeveloped regions.