Smackover Lithium Files Definitive Feasibility Study for Its South West Arkansas Project, North America’s Highest-Grade Reported Lithium Brine Reserve

Core Insights - Smackover Lithium, a joint venture between Standard Lithium and Equinor, has filed the Definitive Feasibility Study for its South West Arkansas project, marking a significant step towards lithium production in the U.S. [1][5] Project Overview - The DFS outlines a production capacity of 22,500 tonnes per annum of battery-quality lithium carbonate over a 20-year operational life, with a total output of 447,000 tonnes of lithium carbonate equivalent [3] - The project will initiate production with an average lithium concentration of 549 mg/L and will process brine over its 20-year life at an average concentration of 442 mg/L [3] Financial Metrics - The project is projected to have a 20.2% unlevered pre-tax internal rate of return (IRR) [4] - Average cash operating costs are estimated at $4,516 per tonne, with all-in costs at $5,924 per tonne [4] - The all-in Class III capital expenditure estimate is $1.45 billion, which includes a 12.3% Monte Carlo risked contingency [4] Community and Government Support - The project enjoys strong backing from the local community, the state of Arkansas, and the U.S. government, positioning it as the first commercial Direct Lithium Extraction operation in the U.S. [5] Development Timeline - The estimated development schedule is 34 months from the start of construction to the commercial operation date, with construction expected to begin in 2026 and first production targeted for 2028 [6]