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| Smackover Lithium Arkansas lithium project |
First U.S. commercial lithium extraction from Smackover brine gains momentum
Smackover Lithium’s definitive feasibility study (DFS) confirms strong economics for its Arkansas lithium project. This milestone signals the first commercial lithium extraction from the Smackover Formation in the U.S., a critical step in domestic battery supply chain development.
DFS Highlights Strong Returns and Long-Term Resource Viability
The DFS projects 22,500 tpa of battery-grade lithium carbonate output from 2028. Smackover Lithium, a joint venture between Standard Lithium and Equinor, estimates a 20-year mine life with 481 mg/L average lithium concentration. Pre-tax NPV reaches $1.7 billion with a 20.2% IRR, based on $22,400/t lithium pricing and 8% discount rate.
The project’s $1.45 billion Class III capex includes a 12.3% contingency, supported by 18 months of front-end engineering design. The study incorporates pilot learnings to reduce capital intensity in future expansions. Average operating costs are projected at $4,516/t, with all-in costs at $5,924/t—competitive for U.S. lithium production.
U.S. Lithium Production Secures Critical Mineral Supply
Smackover Lithium leverages Koch Technology’s direct lithium extraction (DLE) process under regional exclusivity. This technology, paired with favorable resource grades, positions the project as a domestic linchpin in U.S. energy transition strategies. The U.S. Department of Energy has already committed $225 million in funding, underscoring its strategic importance.
Measured and Indicated Resources total 1.18 million tonnes LCE, with Proven Reserves of 447,000 tonnes. The resource base spans 0.5 km³ of lithium-rich brine. The company has drilled new in-fill wells and re-entered old wells to support reserve upgrades, ensuring technical readiness for a final investment decision.
Strategic Partnership Reinforces Execution Confidence
Smackover Lithium benefits from Equinor’s global project expertise and Standard Lithium’s process knowledge. COO Dr. Andy Robinson stated that years of development have de-risked the technology and enhanced execution certainty. The team targets first production in 2028, positioning itself as a U.S. critical minerals leader.
Meanwhile, analysts estimate the broader Smackover Formation may hold over 4 million tonnes of lithium. Therefore, this project could unlock further investment and create a scalable domestic lithium corridor from Texas to Florida.
ScrapInsight Commentary
Smackover Lithium’s DFS marks a turning point for U.S. lithium independence. The robust project economics and DLE-based recovery offer a viable alternative to foreign supply chains. As regulatory incentives align with market demand, this project could set cost and sustainability benchmarks for U.S.-based lithium extraction.
