Standard Lithium received final integration approval from the Arkansas Oil and Gas Commission for its Reynolds Brine Unit, covering a 20,854‑acre unitized area and confirming a 2.5% lithium royalty—the first royalty of its kind for brine‑derived lithium in Arkansas.
The approval de‑risks the Southwest Arkansas lithium project, a joint venture between Standard Lithium (55%) and Equinor (45%), and positions the company to move toward a final investment decision. The project is the first commercial direct lithium extraction operation in the United States.
The project has secured a $225 million grant from the U.S. Department of Energy to support construction of a processing facility. A definitive feasibility study completed in September 2025 projected an unlevered pre‑tax NPV of $1.7 billion and an IRR of 20.2% on a $1.45 billion capital expenditure, with an expected 20‑year operating life.
Standard Lithium maintains a strong balance sheet with no debt and high liquidity, although it remains in a pre‑production phase with negative earnings and cash flow. The integration approval, combined with the DOE grant and favorable economics, strengthens the company’s position to begin producing 22,500 tonnes of battery‑quality lithium carbonate annually, with first production slated for 2028.
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