Standard Lithium Ltd. (NYSE American: SLI), in collaboration with Equinor through their joint venture Smackover Lithium, has announced a milestone at their South West Arkansas (SWA) Project. Sampling from the Lester well revealed the highest lithium concentration recorded to date at 616 mg/L, with an average of 582 mg/L across three samples. This achievement concludes the sub-surface exploration activities for Phase 1 of the project. The joint venture team is now focusing on advancing its Front-End Engineering Design (FEED) study, with a Definitive Feasibility Study expected by the third quarter of 2025. The project aims for a Final Investment Decision by the end of the same year. This progress is a significant step toward the sustainable, commercial-scale production of lithium, utilizing a scalable and fully integrated direct lithium extraction (DLE) and purification process.
The Smackover Formation, where the SWA Project is located, is recognized as a world-class lithium-brine asset. The partnership between Standard Lithium and Equinor highlights the potential for greenfield lithium-brine projects in Arkansas and Texas, contributing to the growing demand for lithium in various industries, including electric vehicles and renewable energy storage solutions. The record concentration of 616 mg/L at the Lester well, detailed in the project update available at https://www.standardlithium.com/news, demonstrates the resource quality that could support long-term production. This development is particularly important as global markets seek reliable lithium supplies to support the transition to cleaner energy technologies.
The advancement of the SWA Project through the FEED study and toward a Definitive Feasibility Study by 2025 positions it as a key contributor to North American lithium supply chains. The project's timeline, targeting a Final Investment Decision by late 2025, aligns with increasing industrial demands, as noted in industry analyses at https://www.equinor.com/energy/lithium. By leveraging the Smackover Formation's resources, the joint venture aims to establish a sustainable production hub that reduces dependency on imported lithium, enhancing energy security and supporting economic growth in the region. The integration of DLE technology, as explored in the project's design, offers environmental benefits by minimizing water usage and land disruption compared to traditional mining methods.
This announcement matters because it signals tangible progress in developing domestic lithium resources critical for the electric vehicle and renewable energy sectors. High lithium concentrations like those found at the Lester well improve project economics and feasibility, making commercial production more viable. As demand for lithium-ion batteries surges, projects such as the SWA Project are essential for meeting future needs while promoting sustainable extraction practices. The collaboration between Standard Lithium and Equinor, a major energy company, underscores the strategic importance of lithium in the global energy transition, potentially setting a benchmark for other greenfield projects in the United States.
