By Dominic Chopping
Equinor and Standard Lithium will receive a $225 million grant from the U.S. government to support their lithium project to boost supply of the mineral that is essential for battery production.
Equinor and Standard Lithium entered a strategic partnership last year that saw the Norwegian energy major buy a stake in two Standard Lithium-owned lithium companies in southwest Arkansas and east Texas.
Lithium is a crucial mineral used in electric-vehicle batteries and broader energy storage products.
The U.S. Department of Energy funding will support construction of a processing facility for the Arkansas project, which is targeting annual production of 22,500 metric tons of lithium carbonate for use in battery production in the first phase. A second phase will see production ramp up by a further 22,500 metric tons.
Lithium at the site will be extracted from saltwater in deep underground reservoirs.
"The U.S. Department of Energy's support demonstrates the project's maturity and strengthens its financial robustness as we work towards a final investment decision," said Hege Skryseth, executive vice president for technology, digital & innovation at Equinor.
A feasibility study and front-end engineering design study are underway.
Write to Dominic Chopping at dominic.chopping@wsj.com
(END) Dow Jones Newswires
January 16, 2025 09:22 ET (14:22 GMT)
Copyright (c) 2025 Dow Jones & Company, Inc.
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