Standard targets 2027 start for Arkansas lithium project

Staff reporter

Standard Lithium is aiming for a 2027 production start for a proposed US$1.3 billion lithium brine operation in Arkansas, USA, after lodging a positive preliminary feasibility study.

The Toronto-listed company said PFS base case production of 30,000 tonnes per annum of lithium hydroxide monohydrate, and a 35,000tpa upside case, over circa-20 years generated IRR of 32.8% and 35.4%, respectively, with a long-term price of US$30,000/t for battery-quality LHM.

“The robust economics from the South West Arkansas project PFS showcase its incredible potential,” Standard Lithium president and chief operating officer, Dr Andy Robinson, said.

“Our exploration program in the first half of this year yielded significantly improved lithium concentrations and grew the total resource to 1.8 million tonnes of lithium carbonate-equivalent. The upgraded resource underpins an operating life of at least 20 years at competitive costs.

“Our team has also been hard at work at our demonstration plant at the Lanxess South Facility in El Dorado, processing approximately 14 million gallons of Smackover brine to date and successfully extracting lithium. We now have a well-tested direct lithium extraction [DLE] process, and we successfully converted our DLE product into battery-quality lithium hydroxide.

“This start-to-finish proven process, combined with an improved resource at SWA, positions the project to be a meaningful contributor to US lithium supply within this decade.”

The project is 24km west of Magnolia in Columbia County, south-western Arkansas. It is said to be readily accessed via a paved highway and has extensive regional water, power, gas and rail infrastructure.

“The region’s rich history of operating oil and gas assets supports the local workforce pool,” Standard Lithium said.

It is targeting a construction start in 2025 and production in 2027, “subject to continuing project definition, due diligence, available financing and receipt of future feasibility studies”.

Standard Lithium’s share price was flat on the news, capitalising the company at just over C$1 billion.


Leave a Reply

Not registered? Register Now

Powered By MemberPress WooCommerce Plus Integration