Standard Lithium’s subsidiary has been chosen for a potential award negotiation of up to US$225 million from the U.S. Department of Energy.
The U.S. subsidiary, SWA Lithium LLC, which is jointly owned, has the opportunity to secure one of the largest contracts granted to a U.S. critical minerals project. This opportunity comes from the second wave of funding under the Infrastructure Investment and Jobs Act, which aims to enhance domestic manufacturing across all segments of the battery supply chain and increase the production of critical minerals in the United States.
This funding will enable the construction of a central processing facility for Phase 1 of the South West Arkansas project. The facility for Phase 1 is being designed to produce 22,500 tonnes of battery-grade lithium carbonate annually, using commercial-scale direct lithium extraction (DLE) technology.
The project’s design is being revised from its original preliminary feasibility study to target a total output of 45,000 tonnes per year of lithium carbonate, to be developed in two phases of 22,500 tonnes each. The brine unit, which will supply lithium-bearing brine to the project facilities, spans lands across two counties.
Standard Lithium’s CEO, David Park, stated in a news release, “The significant cost share from the U.S. government demonstrates their continued support for investing in secure and sustainable supply chains of domestic lithium production.” He added, “This decision by the Department of Energy validates the caliber of the project we are building through our de-risked approach to project development, strong partnerships, methodical testing, and purpose-built processes tailored to meet the specific demands of large-scale lithium production in the Smackover Formation.”
This award is provisional and is subject to successful final negotiations with the Department of Energy. Standard Lithium, headquartered in Vancouver, focuses on the exploration and development of lithium brine properties in the United States.
The stock of Standard Lithium last traded at C$1.72, showing a 6.83% increase over the past five days. This content is for informational purposes only and should not be considered as investment advice.
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