Standard Lithium Targets 2026 Decision for Arkansas Lithium Project

Standard Lithium (NYSEAMERICAN:SLI) is targeting a final investment decision by the end of 2026 for its South West Arkansas lithium project, which the company expects could begin initial commercial production in 2029, according to Dan Rosen, the company’s vice president of strategy and investor relations.

Speaking at the Lytham Partners fall 2026 investor conference, Rosen said Standard Lithium is focused on developing lithium assets in the Smackover Formation, a geologic formation spanning parts of Arkansas and Texas. The company operates its projects through a joint venture with Equinor, with Standard Lithium holding a 55% economic interest and Equinor holding 45%.

South West Arkansas Project Nearing Investment Decision

The South West Arkansas project is Standard Lithium’s most advanced development and is designed initially to produce 22,500 metric tons of lithium carbonate annually. Rosen described the project as “shovel-ready” and said the company sees potential to double capacity to 45,000 tons in a later phase.

The project carries an estimated $1.5 billion capital cost and a planned operating life of more than 20 years, Rosen said. Standard Lithium completed a definitive feasibility study during the fourth quarter of the prior year and has completed the federal National Environmental Policy Act review process, according to the presentation.

Rosen said the company has selected key construction vendors and issued limited notices to proceed, allowing early work to begin before a final investment decision. The company is also working to complete what Rosen characterized as one remaining small component of its offtake process by the end of the current quarter.

Standard Lithium has signed offtake agreements with commodity trading company Trafigura and battery producer LG Energy Solution, Rosen said. The company expects to pursue more than $1 billion in non-recourse project financing through export credit agencies. Funding for the project is expected to include a $225 million U.S. Department of Energy grant, with remaining capital contributed by the joint-venture partners.

East Texas Development Pipeline

Beyond Arkansas, Standard Lithium is advancing several potential projects in East Texas, also within the Smackover Formation. Its most developed Texas asset, the Franklin project, has a preliminary economic assessment outlining potential production capacity of 70,000 tons of lithium carbonate.

Rosen said the Franklin project is expected to follow the South West Arkansas development. Standard Lithium plans to continue development work toward a pre-feasibility study in 2027. Across three prospective East Texas projects, the company believes it could ultimately exceed 100,000 tons of annual lithium carbonate production.

Rosen also noted that the East Texas assets have identified potential bromine and potash opportunities, though the company’s presentation centered on lithium development.

Smackover Advantages and Direct Lithium Extraction

Rosen said Standard Lithium views the Smackover as an advantaged U.S. location because of high lithium concentrations in brine, existing industrial infrastructure and a long history of oil, gas and bromine operations. The region currently produces about one-third of the world’s bromine, he said, providing an experienced workforce and established regulatory framework for brine processing.

The company estimates operating costs at the South West Arkansas project below $6,000 per ton of lithium carbonate, which Rosen said would place it in the first quartile of the global cost curve.

Standard Lithium plans to use direct lithium extraction technology supplied by Aquatech at South West Arkansas. Rosen said the technology has been tested at a demonstration plant operating since 2021 within an existing LANXESS bromine operation. The facility processes real brine and includes what Rosen described as a commercial-scale extraction column, reducing the scale-up requirement for a future commercial plant.

Aquatech provides performance guarantees for the technology, Rosen said.

Balance Sheet and Market Outlook

At the time of the presentation, Rosen said Standard Lithium had nearly $140 million in cash and no debt, with a market capitalization of approximately $600 million.

Rosen said lithium demand is expected to double by the end of the decade and triple from current levels by 2035, driven by electric vehicles, battery storage and growing focus on domestic critical-mineral supply chains. He also pointed to demand associated with grid storage and data-center power needs.

“Most of lithium production today” occurs in China rather than North America, Rosen said, while North American demand is expected to expand. Standard Lithium’s planned Arkansas and Texas developments are intended to help address that supply gap, he said.

About Standard Lithium (NYSEAMERICAN:SLI)

Standard Lithium Ltd. is a Canadian development-stage company focused on producing battery-grade lithium from brine resources in the United States. Its primary projects are located in southwestern Arkansas and are associated with the Smackover Formation, a region known for lithium-bearing brines.

The company is developing direct lithium extraction (DLE) technology designed to selectively remove lithium from brine before the remaining fluids are reinjected underground. Standard Lithium has operated a demonstration plant in Arkansas and is working to advance commercial-scale production of lithium compounds, including lithium carbonate, for use in electric-vehicle batteries, energy-storage systems, and other applications.

Standard Lithium has historically worked with industrial and energy partners, including LANXESS, to evaluate lithium recovery from brines produced during existing operations in the region.