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 projects: the Phase 1A Project and the South West Arkansas Project, are located in Southern Arkansas near the Louisiana border.
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.
Arkansas is a business-friendly environment with a rich history of chemical and energy production, a deep talent pool and is close in proximity to many major markets. Many of the chemical inputs (reagents) required for lithium extraction are produced within driving distance of the projects. The local university and community college offer programs in related engineering and chemical processing fields. The projects are supplied with locally produced low-cost power, ample water and have access to roads and rail.
The projects have significant community and stakeholder support, a social license to operate in a region familiar with extractive industries.
The Phase 1A Project (“Phase 1A”), Standard Lithium’s first commercial lithium extraction plant, is proposed to be located at the LANXESS South Plant, approximately 8 miles southwest of the City of El Dorado in Union County, Arkansas. Phase 1A proposes construction and operation of the Company’s first commercial lithium extraction plant via processing of tail brine from the LANXESS South Plant.
Development at Phase 1A including commercial agreements, equity participation and phasing are governed by a Memorandum of Understanding with LANXESS, a subsidiary of LANXESS AG, which has exclusive brine extraction rights for 142,881 acres. Details of the MOU are outlined in the Company’s news release dated February 24, 2022.
PHASE 1A DEFINITIVE FEASIBILITY STUDY
The Company completed a Definitive Feasibility Study (“DFS”) for Phase 1A in the third quarter of 2023 and expects to make a Final Investment Decision (“FID”) in the first half of 2024, subject to continuing project definition, finalization of commercial agreements with LANXESS and project financing initiatives. Assuming a positive FID, construction would commence in 2024 and commercial production would begin in 2026.
Definitive Feasibility Study Highlights (US$):
Standard Lithium has been operating an industrial-scale fully integrated direct lithium extraction (“DLE”) demonstration plant at the LANXESS South facility since May 2020.
Our DLE process innovatively applies proven and scalable technologies designed to selectively extract lithium from the mineral-rich Smackover brine. The Company’s DLE process achieves this with a smaller environmental footprint, higher efficiency, and a consistent final purity than traditional evaporative processes.
The South West Arkansas Project (“Project”) is located 15 miles west of the City of Magnolia in south western Arkansas within the Smackover Formation. The Project encompasses approximately 36,000 unitized acres and is home to the highest grade lithium brine resource in North America.
The Company completed a Preliminary Feasibility Study in the third quarter of 2023 (link to press release). Construction is currently targeted to begin in 2025 post completion of a Feasibility Study, and first production is expected in 2027.
Preliminary Feasibility Study Highlights (US$):