Smackover Lithium, the joint venture between Standard Lithium and Equinor, announced on September 3, 2025, positive results from a Definitive Feasibility Study (DFS) for its South West Arkansas (SWA) project. The DFS confirms robust economics, with a pre-tax unlevered Net Present Value (NPV8) of $2.6 billion and an Internal Rate of Return (IRR) of 20.2% over a 20-year operating life.
The initial capital cost (CapEx) for the project is estimated at $1.45 billion, which includes a 12.3% contingency. The average cash operating cost is projected to be $4,516 per tonne of lithium carbonate, with an average all-in operating cost of $5,924 per tonne.
The SWA project is designed to produce 22,500 tonnes per annum (tpa) of battery-quality lithium carbonate over a 20-year modeled operating life, supported by Proven and Probable Reserves for a 40-year operating life. A Final Investment Decision (FID) is targeted for year-end 2025, with construction planned for 2026 and first commercial operations in 2028.
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