Positive Results Of Definitive Feasibility Study First Commercial Lithium Extraction Plant At LANXESS South Plant

EL DORADO, AR - Standard Lithium Ltd. announced positive results of a Definitive Feasibility Study (DFS) for its first commercial lithium extraction plant project (Phase 1A) proposed to be located at the LANXESS South Plant. The DFS considers first production of battery-quality lithium carbonate in 2026, using direct lithium extraction, from Smackover brine currently being produced by LANXESS Corporation from their South Brine Unit.  

Phase 1A Highlights: 1) First production in 2026. Average annual production of 5,400 tonnes per annum (“tpa”) over the operating life with peak annual production of 5,700 tpa. 2) 25-year minimum operating life. Proven and Probable Reserves of 208 Kt lithium carbonate equivalent (LCE) at an average concentration of 217 mg/L support up to 40 years of operations. 3) Strong project economics. After-tax NPV $550 million and IRR of 24% assuming discount rate of 8% and a long-term price of $30,000/t for battery-quality Li2CO3. 4) Operating costs reflect first step to commercial production. Average annual operating costs of $6,810/t over the operating life. 5) CAPEX of $365 million. Total capex estimate of $365 million includes 15% contingency. 6) Upgraded Measured Resource. Total Measured and Indicated Resource of 2.8 Mt LCE at average concentration of 148 mg/L for the combined LANXESS South, Central and West Brine Units; Phase 1A represents production of approximately 5% of the total Measured and Indicated Resources.

“We are taking a thoughtful, phased approach to project development,” said Andy Robinson, President and COO. “Phase 1A is the first commercial lithium extraction plant proposed for the Smackover, and a modest scale up from the Demonstration Plant that has been operating and efficiently extracting lithium from the same brine for over 3½ years. The Phase 1A Project is substantially de-risked as we move rapidly towards commercialization. We have a deep understanding of the Resource and history of extracting lithium from the brine using DLE, and we’ll be the first to do so at a commercial scale in the Smackover in partnership with LANXESS. We expect to replicate and scale the core elements of this first commercial plant across our extensive and growing project portfolio in the Smackover Formation in Arkansas and Texas.”

Robert Mintak, CEO, commented, “Building on the success of our demonstration DLE facility, Phase 1A taps into the long-established expertise in brine processing, complemented by the infrastructure at the LANXESS South Plant. Phase 1A marks the beginning of a series of lithium projects we've charted across the Smackover Formation, a region that's been integral to the U.S. energy sector for over a century. Leveraging this vast reservoir of knowledge and the region's culture of innovation, we aim to position the region as a significant contributor addressing the U.S.'s needs for sustainably produced lithium.”

“Following the completion of our DFS, our next steps include finalizing commercial agreements with LANXESS and securing project financing. We've partnered with BNP Paribas, a global leader in financial advisory and project financing for critical minerals projects, to serve as our lead debt advisor. We're also actively exploring opportunities within the U.S. Critical Mineral initiatives and the Inflation Reduction Act, focusing on non-dilutive funding solutions to advance our goals.”