- Standard Lithium’s (TSXV:SLI) subsidiary has been selected for an up to US$225 million award negotiation from the U.S. Department of Energy
- The U.S. subsidiary, SWA Lithium LLC, which is jointly owned, could secure one of the largest contracts granted to a U.S. critical minerals project
- The project’s design is being revised from its original preliminary feasibility study to now aim for a total output of 45,000 tonnes per year of lithium carbonate
- Shares of Standard Lithium (TSXV:SLI) last traded at C$1.72
Standard Lithium’s (TSXV:SLI) subsidiary has been selected for an up to US$225 million award negotiation from the U.S. Department of Energy.
The U.S. subsidiary, SWA Lithium LLC, which is jointly owned, could secure one of the largest contracts granted to a U.S. critical minerals project. This opportunity arises from the second wave of funding under the Infrastructure Investment and Jobs Act, which aims to boost domestic manufacturing across all segments of the battery supply chain and increase the production of critical minerals in the United States.
This funding will facilitate 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 now aim for 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.
“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,” Standard Lithium’s CEO, David Park, said in a news release. “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 is a provisional grant that is dependent on completing successful final negotiations with the Department of Energy.
Based out of Vancouver, Standard Lithium‘s principal operations include exploration for and development of lithium brine properties in the United States.
Shares of Standard Lithium (TSXV:SLI) last traded at C$1.72 and has risen 6.83 per cent over the past five days.
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(Top image via Standard Lithium Inc.)