BAKU, Azerbaijan, January 16. The U.S. Department of Energy (DOE) has finalized a $225 million grant for the South West Arkansas (SWA) lithium project, a partnership between Standard Lithium and Equinor, Trend reports.
According to the producer, this funding will help construct a processing facility for the project, which aims to produce 22,500 tonnes of lithium carbonate annually in its first phase, supporting battery production.
In May 2024, Equinor acquired a 45% stake in two lithium companies in Southwest Arkansas and East Texas as part of a strategic partnership with Standard Lithium. The DOE’s grant is seen as a strong endorsement of the project’s progress and financial stability. “The support from the DOE highlights the project’s maturity and strengthens its foundation as we move toward a final investment decision,” said Hege Skryseth, Equinor’s EVP for Technology, Digital & Innovation.
Lithium, essential for electric vehicles and battery storage, will be extracted using Direct Lithium Extraction (DLE) from deep underground brine sources, which are unsuitable for other uses. The project’s scope has expanded from an initial goal of 22,500 tonnes to 45,000 tonnes per year, with development split into two phases.
Located in Lafayette County, Arkansas, the project is expected to create up to 300 construction jobs and 100 permanent positions. The local community will also benefit from infrastructure upgrades, healthcare, education, and workforce development initiatives. The project is currently in the midst of detailed feasibility studies, working toward a final investment decision.