Standard Lithium announced on Thursday that its joint venture with energy firm Equinor, SWA Lithium, has successfully closed a $225 million grant from the U.S. Department of Energy (DoE).
The funding, provided by the DoE’s Office of Manufacturing & Energy Supply Chains, will support the construction of phase 1 of the South West Arkansas (SWA) lithium project.
SWA Lithium, which is owned 55% by Standard Lithium and 45% by Equinor, plans to build one of the world’s first commercial-scale Direct Lithium Extraction (DLE) facilities.
The DLE process, which is touted as faster, more efficient, and environmentally friendly compared to traditional extraction methods, minimizes water usage and reduces habitat disruption.
The project, located in Lafayette and Columbia counties in Arkansas, is expected to produce 45,000 tonnes per annum of lithium carbonate. This will be developed in two phases, each targeting 22,500 tonnes. Phase 1 production is expected to begin in 2028, with a final investment decision targeted by the end of 2025.
In a statement, Standard Lithium noted that the grant will play a crucial role in advancing the project, which aims to bolster U.S. lithium supply for electric vehicle batteries and other energy storage needs.