Canada-based Standard Lithium Ltd. has filed a definitive feasibility study for its first commercial lithium project, “Phase 1A,” to be located at the LANXESS South Plant in El Dorado.
With the first expected production in 2026, Phase 1A is expected to be the first US-based lithium production project built in six decades, and the first commercial direct lithium extraction facility in North America, with the potential to single-handedly double current US lithium production levels.
Phase 1A will process lithium-rich brine currently flowing through existing infrastructure and represents production of only five percent of the total Measured and Indicated Resource of 2.8 Mt lithium carbonate equivalent in the area. The Definitive Feasibility Study demonstrates strong economic viability, predicting an initial annual production of 5,700 tonnes and an average annual production of 5,400 tonnes of battery-quality lithium carbonate over a 25-year operating life, based on Proven and Probable Reserves of 208 Kt LCE at an average concentration of 217 mg/L.
Phase 1A represents a 60-times scale-up from the operational Demonstration Plant, which has been using the same brine that will feed the proposed commercial plant over a three-and-a-half-year period of effective and efficient lithium extraction. Standard Lithium expects to make a final investment decision for Phase 1A in the first half of 2024.
Standard Lithium intends to scale and replicate the development model for the Phase 1A project across its portfolio of projects in the Smackover Formation, which includes the South West Arkansas Project and highly prospective East Texas landholdings.
Surveys have shown that lithium concentrations tend to improve from east to west across the foundation; the highest concentrations in North America known to the company were recently found in east Texas with a concentration of 663 mg/L. Higher concentrations paired with economies of scale through the advancement of multiple projects are expected to afford Standard Lithium a competitive advantage as it expands its footprint through the Smackover Formation.
To find the full report and more information on the project, click here.
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