Arkansas Lithium Project Finalizes $225mn US DOE Award

(Editors at Energy Analytics Institute, 16.Jan.2025) — The US Department of Energy (DOE) finalized a $225mn grant for the South West Arkansas (SWA) lithium project as proposed by Equinor and Standard Lithium.

The funding is from the DOE’s Office of Manufacturing and Energy Supply Chains and will support construction of a processing facility for the SWA project, which in Phase 1 is targeting an annual production of 22,500 tonnes of lithium carbonate for use in battery production, Equinor said 16 Jan. 2025 in an official statement.

Equinor entered a strategic partnership in May 2024 with Standard Lithium acquiring a 45% share in 2 lithium companies in Southwest Arkansas and East Texas.

“The US Department of Energy’s support demonstrates the project’s maturity and strengthens its financial robustness as we work towards a final investment decision. We look forward to working with Standard Lithium and alongside the local community to enhance the US lithium supply chain by deploying innovative technology,” Equinor executive vice president for Technology, Digital & Innovation Hege Skryseth said in the statement.

Hege Skryseth, executive vice president for Technology, Digital & Innovation in Equinor. Photo: Ole Jørgen Bratland
Hege Skryseth, executive vice president for Technology, Digital & Innovation in Equinor
Photo: Ole Jørgen Bratland

Lithium is an essential mineral and is required to meet the projected growth in electric vehicles and broader battery energy storage. Direct Lithium Extraction (DLE) is a method of producing lithium from lithium-rich saltwater typically from deep underground reservoirs which cannot be used for drinking or agriculture purposes.

Equinor began testing DLE technologies in 2018 to build an understanding of how to scale-up including pre-treatment of subsurface brines and processing to battery grade lithium chemicals.

The project’s design is being updated from its original Preliminary Feasibility Study (PFS). The target is now a larger total output of 45,000 tonnes per annum of lithium carbonate, to be developed in 2 phases of 22,500 tonnes each. A Definitive Feasibility Study (DFS) and Front-End Engineering Design (FEED) study are currently underway to mature the project towards a final investment decision (FID).

FACT SHEET: Mineral Extraction from Brines

The SWA project’s facilities are planned to be located in Lafayette County,  7 miles south of Lewisville, Arkansas and the brine unit that will source lithium-bearing brine for the project facilities spans Lafayette and Columbia counties. Pending a positive investment decision, the project is expected to create up to 300 construction and 100 direct jobs. The project could further benefit the local community through infrastructure improvements, healthcare initiatives, educational partnerships, and workforce development programs, Equinor said.

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By Editors at Energy Analytics Institute. © 2025 Energy Analytics Institute (EAI). All Rights Reserved.