Allie Kennedy Thurmond, vice president for US lithium at Equinor, said that Smackover Lithium has further approvals to secure for SWA, including a National Environmental Policy Act (NEPA) process. It is also working with the DOE to progress its approved loan, she added.
“We had a pause in discussions when the US administration changed in January, which we were expecting to happen regardless of the outcome of the election, but we’re happy to see that the DOE has since reengaged,” Thurmond told Fastmarkets.
“So, we’re starting to meet with the DOE again, both in terms of processing the grant but also on the NEPA side. We’re having those conversations,” she added.
Equinor is ten months into its partnership with Standard Lithium as Smackover Lithium. The Norway-headquartered energy company has a 45% stake in Smackover Lithium, with the remainder held by Standard Lithium.
Formed in May 2024, Smackover Lithium is developing two direct lithium extraction (DLE) projects in southwest Arkansas and east Texas.
Before completing the joint venture, Standard had already applied for a DOE grant, a process that Equinor joined. In January, the project was awarded a $225 million grant, which will support construction of Phase 1 of the SWA project.
Thurmond said that Equinor had evaluated several projects before partnering with Standard Lithium and was impressed by the Vancouver, Canada-based company’s innovation and approach to partnerships including with both Tetra Technologies and Koch Technologies Systems (KTS).
“Standard Lithium really passed some critical milestones, even before we came into the picture. Standard Lithium was also very clear that it wanted a partnership, not just a backer,” she said.
Thurmond said Equinor has seconded workers to the project and the teams were well integrated.
SWA project
The SWA project is targeting annual production of up to 45,000 tonnes of battery-quality lithium carbonate in two phases of 22,500 tonnes per year each.
Pending a positive investment decision, the start of construction is slated for 2026 with first production as early as 2027 and commercial operations in 2028.
The decision to produce carbonate and not hydroxide was driven by the market, and in particular following insights gained by Standard Lithium as part of its work on the Phase 1A project near El Dorado, Arkansas, Thurmond noted.
“Through its Phase 1A project, Standard was able to build relationships and have good conversations with the market players, including with battery manufacturers, to understand what the signals [for battery chemistries] are,” she told Fastmarkets.
“It was a clear signal from the market – a switch to carbonate versus hydroxide – is what is going to be in demand by the time that we’re producing at Smackover,” she added.
DLE technology
Equinor’s roots are in oil and gas, but lithium has been in Equinor’s ecosystem at various phases since 2018, when the company developed a direct lithium extracting (DLE) testing facility in Norway. The company has worked with different DLE technologies, which are used to extract lithium directly from brine sources without the need for extensive evaporation ponds.
“Equinor is a broad energy company. Our heritage is oil and gas and we’re proud of that, but we’ve also pioneered offshore wind, we’ve been in carbon capture and storage (CCS) for decades, and we have the ambition to be a leading company in the energy transition,” Thurmond said.
“It’s difficult to see an energy transition that isn’t electrified, and it’s difficult to see electrification if you don’t have access to critical minerals,” she added.
In 2021, the company’s Equinor Ventures arm invested in Lithium De France, which is developing DLE and geothermal projects in France.
In the US, the SWA project uses DLE technology by KTS and recently achieved one of its last technical milestones by completing the final DLE derisking step ahead of commercialization. Working in partnership with KTS, the joint venture operated an onsite DLE field-pilot plant, where it surpassed key performance criteria.
“In Equinor, we’re taking the approach right now that we’re going to be technology agnostic, and we’re not developing technology in this space. There are people that are far better at it, and they can focus on it,” Thurmond said.
“We just want to utilize technology that is going to give us the best result and allow us to stay cost competitive,” she added.
Equinor isn’t currently looking to move into hard rock from brines, nor to move down the supply chain into processing, Thurmond said.
Smackover Lithium is also exploring in East Texas. Initial drilling results indicate a significant brine resource with lithium grades exceeding those encountered in Arkansas.
“We’re going to be continuing a well program there later this year, with a couple of re-entries, and maybe a new well drill. By the end of the year into early 2026, we’re hoping to be able to lay out a timeline of what we see in East Texas,” Thurmond added.
Customers
According to Thurmond, discussions with potential customers for offtake to date have focused predominantly on original equipment manufacturers (OEMs), including battery manufacturers and automotive companies.
But the company is also open to the energy storage space, Thurmond noted.
“Right now, batteries demand is predominantly on the electric vehicles side so that’s where a lot of our attention is, but we have an ongoing process that’s looking at a wide range of demand,” she said.
“We’re going through a process now of understanding the market and where we are, so I think we do we have to see how that plays out. We’re optimistic there will be demand for our product in the timeline we will be producing,” she noted, adding: “We’re going to do what is in the best interest of the [joint venture] partners.”
Future in lithium
Thurmond said that Equinor is aware that its first project in lithium is not likely to be its most optimized project, nor its least expensive.
“We’re going to learn a lot in this project and then fortunately, we have a pipeline of projects with this joint venture where we can take those learnings and optimizations,” she added.
Going forward, the company could look at diverse options to grow in lithium, whether through partnerships, mergers and acquisitions or individual projects, Thurmond said.
“There are a wide range of outcomes, and things could go in any number of directions. Equinor will make strategic decisions based on where we are and how we see lithium as a future value chain,” she noted.
“Right now, we’re in Smackover Lithium and LDF, incubating a potential new value chain for Equinor,” she said, adding that the goal is to better understand DLE and its risk profile, and how it might fit into a company like Equinor.
“That’s the general strategy: keep a long lens on what’s out there, invest in the projects we think might have more potential, and then, further invest, as we’ve done with Smackover Lithium, in projects that we think have the potential to be a future value chain or core business for Equinor,” she said.
Thurmond told Fastmarkets that Equinor was still evaluating what that value chain might look like for Equinor, adding that the company is focused on being a leading player in the energy transition.
“We want to be invested and to bring forth energy transition value chains that are great for our shareholders and give us the rates of return that compete and are worth the investment. That’s what we’re demonstrating through these projects,” she noted.
“These projects are first of their kind for the company. But, if the potential holds, then we have a good case to make to the company, based on what its aspirations are,” she said.
According to Thurmond, lithium has a very robust narrative as it relates to Equinor’s purpose, which is “energy for people, progress for society, searching for better.”
“It’s easy to demonstrate that lithium contributes to energy for people, demonstrates progress for society in the Arkansas and Texas communities we will operate in, or that DLE is searching for better through extraction for critical minerals from brine,” she said.
“Now, what we need to do is demonstrate the profitability. We feel we can do this safely and compliantly while we demonstrate that it makes sense for our shareholders,” she added.
In Hotter Commodities, special correspondent Andrea Hotter covers some of the biggest stories impacting the natural resources sector. Read more coverage on our dedicated Hotter Commodities page here.
