THE SMACKOVER FORMATION
An extensive, porous, and permeable limestone aquifer extending from central Texas to the Florida panhandle. One hundred years of resource development, 60+ years of commercial brine operations for bromine production, and the highest reported lithium in brine values in North America make the Smackover a promising lithium production powerhouse with room to scale.
The Company’s flagship project, the South West Arkansas Project, and the Phase 1A Project are located in southern Arkansas near the Louisiana border. Development work is also underway in East Texas, with a maiden inferred resource report expected to be released in Q3 2025, further solidifying our presence in this world-class lithium brine resource.
For over 100 years, the Smackover Formation in the southern-U.S. has played an important role in America’s conventional energy economy. Since the 1950’s brines pumped from the Smackover Formation in south Arkansas have been used for the recovery of bromine (Arkansas is the world’s second largest producer of bromine). That same bromine rich brine has commercial lithium concentrations. Standard Lithium has developed a fully integrated, start to finish, Direct Lithium Extraction (DLE) process to selectively extract lithium from Smackover brine and produce battery quality lithium compounds.
The gulf coast region is a business-friendly environment for our projects. Its rich history in chemical and energy production, a deep talent pool and proximity to major markets offers significant advantages. Essential chemical inputs (reagents) are readily available within the region. Local universities and community colleges offer programs in relevant engineering and chemical processing fields. The projects benefit from locally produced low-cost power, ample water and excellent roads and rail infrastructure.
The projects have significant community and stakeholder support, a social license to operate in a region familiar with extractive industries.
- Region is home to a large-scale commercial brine processing industry, 60+ years of operations.
- Arkansas is one of the world’s largest sources of bromine, a mature regulatory framework exists for brine production and re-injection.
- Smackover Formation is an extensive, porous, and permeable limestone aquifer that hosts vast volumes of mineral rich brine.
- Geological data from thousands of wells demonstrates formation thickness, continuity, and chemistry.
THE SOUTH WEST ARKANSAS PROJECT
ACCELERATING DEVELOPMENT IN PARTNERSHIP WITH EQUINOR
Our flagship South West Arkansas Project, developed in partnership with global energy leader Equinor, is a cornerstone of our commitment to sustainable and responsible lithium development. This partnership combines our technical knowledge and experience in direct lithium extraction with Equinor's expertise in subsurface assessment, project development, financing, construction, operations, and commitment to sustainability. Together, we're accelerating progress and shaping the future of sustainably sourced lithium.
Located 15 miles west of the City of Magnolia in southwestern Arkansas within the Smackover Formation, the project boasts one of the highest-grade lithium brine resources in North America, with a maximum concentration of 616 mg/L and an average of 442 mg/L over total Measured & Indicated Resource. The joint venture is structured with Standard Lithium maintaining a 55% interest and Equinor holding a 45% interest.
For more information on the Standard Lithium and Equinor partnership, see the May 8, 2024 news release.
The Company published the results of a Definitive Feasibility Study in the third quarter of 2025, demonstrating robust project economics to produce 22,500 tonnes per annum (“tpa”) of battery-quality lithium carbonate over a 20-year operating life, with ample opportunity for further expansion. Construction is anticipated to begin in 2026 following their completion, with first production targeted for 2028, subject to a Final investment Decision (“FID”) which is currently targeted for around year-end 2025.
Definitive Feasibility Study Highlights (US$):
- Indicates base case production of 22,500 tonnes per annum (“tpa”) of battery-quality lithium carbonate
- Average annual operating costs of $4,516/t over the operating life
- Total capex estimate of $1.45 Billion includes 12.3% contingency
- Unlevered pre-tax NPV of $1.7 Billion and IRR of 20.2% assuming discount rate of 8% and a long-term price of $22,400/t
- Measured and Indicated Resource of 1.2 Mt at average lithium concentration of 442 mg/L
The updated Definitive Feasibility Study, replacing the Pre-Feasibility Study, to be published around the end of Q3 2025. The results of the DFS are available in the news release issued by the Company on September 3, 2025.
Technical Report: Pre-Feasibility Study - South West Arkansas Project
PHASE 1A: ADVANCING DIRECT LITHIUM EXTRACTION TO COMMERCIAL SCALE
The Phase 1A Project (“Phase 1A”), this brownfield development aims to achieve significant commercial lithium production by processing tail brine from the existing bromine operations at the LANXESS South Plant in Union County, Arkansas. It will feature a commercial-scale Direct Lithium Extraction (DLE) and lithium carbonate conversion facility.
This project benefits from a strategic partnership with LANXESS. Key agreements, currently under negotiation, will establish the operational framework, including brine supply and disposal, a dedicated production facility lease, and access to essential infrastructure services. These agreements will pave the way for sustainable lithium production.
The Company provided an update on the Phase 1A relationship with LANXESS on December 4, 2023.
PHASE 1A DEFINITIVE FEASIBILITY STUDY
The completion of a Definitive Feasibility Study (“DFS”) for Phase 1A in the third quarter of 2023 highlights the project’s potential. Subject to continuing project definition work, finalization of commercial agreements with LANXESS, and project financing initiatives, the Company will be in a position to make a Final Investment Decision.
Definitive Feasibility Study Highlights (US$):
- Indicates average annual production of 5,400 tonnes per annum (“tpa”) of battery-quality lithium carbonate (“Li2CO3”); peak production of over 5,700 tpa
- Average annual operating costs of $6,810/t of Li2CO3 over the 25-year operating life
- Total capex estimate of $365 million includes 15% contingency
- After-tax NPV of $550 million and IRR of 24% assuming production of 5,400 tpa, discount rate of 8% and long-term price of $30,000/t for battery-quality Li2CO3
- Measured and Indicated Resource of 2.8 Mt lithium carbonate equivalent (“LCE”), respectively, at average lithium concentrate of 148 mg/L; Proven and Probable Reserves of 208 Kt LCE at an average concentration of 217 mg/L
Technical Report: First Commercial Lithium Extraction Plant – Phase 1A
STANDARD LITHIUM LEADS THE WAY IN DLE
STANDARD LITHIUM LEADS THE WAY IN DIRECT LITHIUM EXTRACTION
Standard Lithium operates North America's only large-scale, continuously operating Direct Lithium Extraction (DLE) demonstration plant. Commissioned in May 2020, this pioneering facility has successfully processed roughly 35 million gallons (132 million liters) of Smackover brine as of September 2025.
Our demonstration plant provides crucial insights into long-term lithium extraction. Unlike traditional small-scale, short-term pilot programs, we process real Smackover brine directly from the resource. This continuous operation allows us to understand the dynamic conditions of commercial-scale operations, informing the design of our future facilities.
A commercial-scale DLE plant built on insights gained from our demonstration plant would offer distinct advantages over conventional methods:
- Reduced Environmental Impact: Our DLE technology boasts a smaller environmental footprint compared to traditional evaporative processes.
- Enhanced Efficiency: Our innovative approach maximizes lithium extraction, increasing resource utilization.
- High-Purity Lithium Products: Standard Lithium's DLE process consistently delivers high-purity lithium for the demanding battery market.
Standard Lithium's tested DLE process and commitment to innovation position us at the forefront of unlocking the Smackover's lithium potential.
Images from Standard Lithium’s continuous operation Direct Lithium Extraction demonstration plant at the LANXESS South Plant near El Dorado, Arkansas