Standard Lithium Ltd. (SLI) is a North American lithium development company focused on advancing lithium extraction projects in the United States, particularly within Arkansas and Texas. The company aims to contribute significantly to the domestic supply of lithium, a critical component in electric vehicle batteries and renewable energy storage systems.Home+1Reuters+1
Technology and Extraction Methods
Standard Lithium employs Direct Lithium Extraction (DLE) technology, an innovative approach designed to efficiently and sustainably extract lithium from brine resources. Unlike traditional methods that rely on large evaporation ponds, DLE utilizes techniques such as adsorption and ion exchange to selectively extract lithium ions from brine. This method offers several advantages, including reduced environmental impact, faster processing times, and higher recovery rates. The company's demonstration plant in El Dorado, Arkansas, has been operating continuously since its commissioning in May 2020, showcasing the practical application of DLE technology. Reuters+6YouTube+6The Verge+6Lithium+1Home+1Standard Lithium Ltd.+1Standard Lithium Ltd.+1
Resource Estimates in Arkansas and Texas
In Arkansas, Standard Lithium's South West Arkansas (SWA) Project has reported significant lithium resources. The project boasts an average lithium grade of 437 mg/L, underpinning a minimum 20-year operating life with plans for at least 30,000 tonnes per annum of battery-quality lithium hydroxide production. Additionally, the U.S. Geological Survey estimates that the Smackover Formation in southern Arkansas may contain between 5 to 19 million tonnes of lithium, highlighting the region's substantial potential. JPT+27Stock Titan+27Standard Lithium Ltd.+27Stock Titan+2Standard Lithium Ltd.+2Standard Lithium Ltd.+2Stock Titan+3The Verge+3Arkansas Times+3
In East Texas, the company's drilling program has identified lithium brine concentrations as high as 806 mg/L in Franklin County. The first project area spans approximately 67,000 acres, with ongoing efforts to expand the resource base. Stock Titan
Development News
Standard Lithium has achieved several key milestones:Empower Lives+16Standard Lithium Ltd.+16Standard Lithium Ltd.+16
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DOE Grant: In January 2025, the U.S. Department of Energy finalized a $225 million grant to support the construction of Phase 1 of the SWA Project. This funding underscores the project's strategic importance in bolstering domestic lithium production. Stock Titan+8Reuters+8Mining Technology+8
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Joint Venture Formation: In January 2025, Standard Lithium and Equinor announced the formation of Smackover Lithium, a joint venture dedicated to developing lithium extraction projects in Southwest Arkansas and East Texas. Reuters+13Stock Titan+13Standard Lithium Ltd.+13
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Technology Advancements: The company has reported exceptional lithium recovery rates exceeding 99% in field-pilot testing, demonstrating the effectiveness of its DLE technology. The Verge+2Stock Titan+2Lithium+2
Ownership and Partnerships
Equinor, a prominent international energy company, has acquired a 45% stake in Standard Lithium's projects in Southwest Arkansas and East Texas. This partnership involves an initial $30 million cash payment to Standard Lithium, with Equinor funding a $60 million work program. Additional payments of up to $70 million are contingent upon future project milestones and final investment decisions. Standard Lithium retains a 55% ownership stake and continues as the operator of these projects, while Equinor contributes its subsurface expertise. Reuters+14Enverus+14Nasdaq+14Reuters+3Standard Lithium Ltd.+3Mining Technology+3Reuters+1Standard Lithium Ltd.+1
Financial Overview
As of December 31, 2024, Standard Lithium reported cash reserves of $31.2 million and working capital of $27.5 million, with no term or revolving debt obligations. The company's stock is publicly traded under the ticker symbol SLI.Stock Titan+1GlobeNewswire+1
Conclusion
Standard Lithium Ltd. is strategically positioned to become a leading player in the U.S. lithium market through its innovative DLE technology and significant resource holdings in Arkansas and Texas. The partnership with Equinor and substantial support from the U.S. Department of Energy further enhance the company's prospects. As the demand for domestically sourced lithium continues to grow, Standard Lithium's developments are poised to contribute meaningfully to the energy transition.Reuters+1Standard Lithium Ltd.+1
"Smackover Lithium" is a newly formed joint venture (JV) between Standard Lithium Ltd. (55%) and Equinor (45%), announced in January 2025, created to develop and commercialize lithium extraction projects from the Smackover Formation, which spans southwest Arkansas and east Texas.
🔍 What Is Smackover Lithium?
Smackover Lithium is not just a project name — it is a dedicated JV entity, structured as a separately governed commercial enterprise. It was formed to jointly manage, finance, develop, and operate lithium production facilities using Standard Lithium’s Direct Lithium Extraction (DLE) technology and Equinor’s subsurface expertise and financial backing.
🏢 Ownership Structure
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Standard Lithium (SLI): 55% ownership
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Brings technology, existing pilot plant, lithium resource rights, and operational leadership
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Equinor ASA: 45% ownership
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Brings global energy development experience, large-scale capital support, and subsurface reservoir expertise
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Equinor paid an initial $30 million to Standard Lithium for its stake and committed to fund $60 million in work program development. An additional $70 million is performance-based, contingent on meeting technical and investment milestones.
⚙️ How Will Smackover Lithium Operate?
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Focus Areas:
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Southwest Arkansas Project (SWA): Flagship project with lithium hydroxide production targeted at 30,000 tonnes per year
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East Texas Resource Expansion: High lithium concentration brines discovered; further drilling and testing ongoing
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Operational Structure:
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Standard Lithium is the Operator
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Leads construction, DLE implementation, and lithium hydroxide production
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Maintains control over day-to-day development and engineering
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Smackover Lithium (the JV entity) holds the project assets, receives funding from Equinor, and distributes proceeds in line with ownership
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Technology & Production Method:
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Use of proprietary Direct Lithium Extraction (DLE) technology
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Avoids large evaporation ponds
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Demonstrated >99% lithium recovery rates in pilot-scale trials
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Environmentally low-impact, water-efficient process
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Regulatory and Financial Oversight:
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DOE-funded Phase 1 construction at SWA (via $225M grant)
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The JV is structured to qualify for U.S. government incentives under Inflation Reduction Act (IRA) and other U.S. battery supply chain initiatives
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📈 Viability & Strategic Importance
Yes, Smackover Lithium is viable — here’s why:
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Secure Domestic Lithium Supply: Targets a critical vulnerability in the U.S. EV supply chain by offering a domestic source of lithium hydroxide
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DOE Support + Equinor's Capital: Both public and private capital are backing it
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Strong Resource Base: Multi-million tonne lithium resource estimate across Smackover Formation
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Scalable Model: Once proven, JV could scale or replicate elsewhere in North America
🧠 Summary
Smackover Lithium is a strategic, operational joint venture formed to commercialize large-scale lithium extraction using advanced DLE technology. It’s a separate company, majority-controlled by Standard Lithium, with deep-pocketed support from Equinor, and already positioned to play a major role in the U.S. lithium supply chain — especially with DOE grants and federal incentives backing its development.
Ed Note:
The "Smackover" project is also well positioned in relationship to Tesla's new Battery plants in Texas!