Standard Lithium Joint Venture Files Definitive Feasibility Study for South West Arkansas Lithium Project

Standard Lithium Ltd. (NYSE American: SLI) announced that Smackover Lithium, its 55:45 joint venture with Equinor, has filed the Definitive Feasibility Study for the South West Arkansas project, outlining annual production of 22,500 tonnes of battery-grade lithium carbonate over a 20-year life. The study highlights a 20.2% unlevered pre-tax IRR, average operating costs of $4,516 per tonne, and total capital expenditures of $1.45 billion. Positioned to become the first commercial Direct Lithium Extraction operation in the United States, the project is expected to begin construction in 2026 following a final investment decision, with first production targeted for 2028.

The significance of this development extends beyond the immediate financial metrics, representing a major step forward in establishing domestic lithium production capabilities critical for the growing electric vehicle and energy storage markets. As the United States seeks to reduce reliance on foreign lithium sources, particularly from China, this project's advancement signals a strategic shift toward securing domestic supply chains for battery materials. The project's location in the Smackover Formation, a world-class lithium brine asset, provides natural advantages that could enhance its competitive position in the global lithium market.

The joint venture between Standard Lithium and global energy leader Equinor combines specialized lithium extraction expertise with substantial energy industry experience, creating a partnership well-positioned to navigate the complex technical and regulatory landscape of large-scale lithium production. The project's focus on sustainable development through Direct Lithium Extraction technology addresses growing environmental concerns associated with traditional lithium mining methods, potentially setting new standards for responsible mineral extraction in the industry.

For investors and industry observers, the latest news and updates relating to SLI are available in the company's newsroom at https://ibn.fm/SLI. The successful implementation of this project could have broader implications for the regional economy in southern Arkansas, potentially creating jobs and establishing the area as a hub for advanced battery material production. The timing coincides with increased government support for domestic critical mineral production through initiatives like the Inflation Reduction Act, which provides additional incentives for North American-sourced battery materials.

The project's development timeline, targeting construction start in 2026 and first production in 2028, aligns with projected increases in lithium demand driven by accelerating electric vehicle adoption and renewable energy storage requirements. The definitive feasibility study represents a critical milestone in de-risking the project and moving it closer to commercialization, providing detailed technical and economic analysis that will inform the final investment decision. As battery manufacturers and automotive companies increasingly seek secure, transparent supply chains, projects like South West Arkansas could play a crucial role in meeting future demand while supporting energy transition goals.