Smackover Lithium Reveals Positive Feasibility Study for Arkansas Project

UPDATE: Smackover Lithium, a joint venture between Standard Lithium Ltd. and Equinor, has just announced promising results from its Definitive Feasibility Study (DFS) for the South West Arkansas (SWA) project, significantly advancing the timeline for lithium extraction in the region. This breakthrough comes as the demand for critical minerals surges, making the SWA Project a vital player in the U.S. lithium market.

The DFS highlights a robust economic outlook, projecting a production capacity of 22,500 tonnes per annum of battery-quality lithium carbonate over a 20-year operational life. This initial phase of development is expected to generate a staggering $1.45 billion in capital costs, signaling a substantial investment in domestic lithium production.

Dr. Andy Robinson, President and COO of Standard Lithium, emphasized the significance of these results, stating, “The robust economics from our SWA Project DFS confirm what we’ve known for a long time – that this is a world-class asset and opportunity.” He added that the project is well-positioned to secure a Final Investment Decision (FID) soon, aiming for construction to commence in 2026.

Located approximately 15 miles west of Magnolia and 7 miles south of Lewisville, Arkansas, the SWA Project covers around 30,000 acres of brine leases, with the initial phase focused on the Reynolds Brine Unit. The project is projected to produce 447,000 tonnes of lithium over its lifetime, which positions it as a critical resource for the growing electric vehicle market.

Allison Kennedy Thurmond, VP for U.S. Lithium at Equinor, noted that the completion of the DFS marks an important milestone, allowing the team to progress towards the FID, which is targeted for late 2025. This development is crucial not only for the environment but also for local economies as the project promises to create numerous jobs and bolster the community’s support for sustainable energy initiatives.

The SWA Project’s operational strategy includes a central processing facility designed to handle up to 200,000 barrels per day of brine, ensuring efficient lithium extraction. The innovative LSS Direct Lithium Extraction technology has been extensively tested, achieving an impressive lithium recovery rate exceeding 95%.

As this project moves forward, it will play a pivotal role in establishing the U.S. as a leader in lithium production, essential for energy transition efforts worldwide. The implications of this project extend beyond Arkansas, as it aligns with national goals for securing critical minerals and reducing dependency on foreign sources.

Looking ahead, stakeholders are keenly watching for the upcoming FID decision, which will set the course for construction and the start of commercial operations slated for 2028. With increasing global pressures for sustainable energy solutions, the SWA Project represents a significant step towards a greener future and economic resilience.

Stay tuned for more updates as this developing story unfolds, highlighting the intersection of technology, sustainability, and economic growth in the lithium sector.