Standard Lithium (TSXV: SLI) announced Thursday it has launched a pilot direct lithium extraction (DLE) plant in Arkansas to process brine for battery-quality lithium carbonate.
In partnership with Koch Technology Solutions, the company is now operating the plant at its South West Arkansas project, which it owns in collaboration with Norway’s state-owned petroleum company Equinor (NYSE: EQNR).
“This field-based pilot DLE plant is the final step in ensuring that we have exactly the right data to confirm our design and understand how our commercial plant will operate once constructed,” said Standard Lithium president Andy Robinson.
Operations at the pilot plant are expected to continue until late January 2025, producing 1,000 gallons (3,785 litres) of 6% lithium chloride (LiCl) solution. This solution will be sent to three vendors to produce approximately 30 kg of battery-grade lithium carbonate, which will support initial qualification with potential off-take partners and inform vendor selection for the first commercial facility.
In May, Equinor paid $30 million for a 45% stake in Standard Lithium’s projects in southwest Arkansas and East Texas, along with a pledge to invest an additional $130 million if the projects proceed.
In September, Standard was selected to negotiate funding of up to $225 million from the Department of Energy, one of the largest US government grants ever awarded for critical minerals. The funding is intended to support the construction of the central processing facility for Phase 1 of the project, which is expected to produce 22,500 tonnes of battery-grade lithium carbonate annually.
Standard Lithium’s plan is to reach a total output of 45,000 tonnes annually at South West Arkansas, developed in two phases of 22,500 tonnes each. A definitive feasibility study (DFS) and front-end engineering design (FEED) are currently underway to support this expansion.
Shares of Standard Lithium rose 5% by 10:20 a.m. EDT. The company has a market capitalization of C$373 million ($258 million).
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