Standard Lithium (NYSE:SLI) and its partner Equinor have announced that their jointly owned U.S. subsidiary, SWA Lithium, has been selected to negotiate a $225 million grant from the U.S. Department of Energy (DOE).
The funding, one of the largest awarded to a U.S. critical minerals project, is part of a broader federal initiative aimed at boosting domestic manufacturing and increasing the production of essential minerals.
Overseen by the DOE's Office of Manufacturing and Energy Supply Chains (MESC), the award is conditional, pending successful final negotiations with the department.
The funding will support the construction of the Central Processing Facility (CPF) for Phase 1 of the South West Arkansas lithium project, which is located in Lafayette and Columbia Counties, Arkansas.
The CPF is designed to produce 22,500 tonnes of battery-quality lithium carbonate annually, utilizing Direct Lithium Extraction (DLE) technology.
Standard Lithium and Equinor share ownership of the South West Arkansas project, with Standard Lithium holding 55% and Equinor 45%.
The DOE's support for the project highlights the U.S. government's commitment to expanding domestic production of critical minerals, a crucial component of the nation’s strategy to strengthen its battery supply chain and reduce reliance on foreign sources.