Equinor ASA (EQNR Quick QuoteEQNR - Free Report) and its partner, Standard Lithium, have achieved a milestone with the finalization of a $225 million grant from the U.S. Department of Energy (“DOE”). This funding, allocated through the DOE’s Office of Manufacturing and Energy Supply Chains, is set to support the development of the South West Arkansas (“SWA”) lithium project.

In May 2024, Equinor entered into a strategic partnership with Standard Lithium, acquiring a 45% stake in lithium projects in Southwest Arkansas and East Texas. The SWA project, designed to harness Direct Lithium Extraction (“DLE”) technology, aims to address the growing demand for lithium — a critical mineral for electric vehicles and battery energy storage systems.

The DOE funding will be used for constructing a processing facility in Lafayette County, AR. The project's first phase targets an annual production of 22,500 tons of lithium carbonate, doubling to 45,000 tons in two phases upon completion.

Hege Skryseth, Equinor’s executive vice president for Technology, Digital & Innovation, highlighted that the DOE's support highlights the project's maturity and enhances its financial stability as it progresses toward a final investment decision. Skryseth also noted the collaboration with Standard Lithium and the local community as pivotal in advancing the U.S. lithium supply chain through innovative technology.

The SWA project is undergoing critical evaluations, including a Definitive Feasibility Study and front-end engineering design. These studies aim to refine the project’s design and assess its potential for expansion. A positive final investment decision could lead to substantial local economic benefits, including up to 300 construction jobs and 100 permanent positions.

With its advanced DLE technology, the SWA project plans to extract lithium from underground saltwater reservoirs, preserving vital water resources for agriculture and drinking purposes. The project aligns with the U.S. energy transition goals, addressing the critical need for domestic lithium production to power electric vehicles and renewable energy storage systems.

Upon successful completion of the project, Arkansas will become a key player in the global lithium supply chain, enhancing economic development and fostering sustainable energy innovation.

EQNR’s Zacks Rank & Other Key Picks

EQNR currently carries a Zacks Rank #1 (Strong Buy).

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