Equinor Secures $225M for Arkansas Lithium Project Expansion

Equinor ASA EQNR and its partner, Standard Lithium, have achieved a milestone with the finalization of a $225 million grant from the U.S. Department of Energy (“DOE”). This funding, allocated through the DOE’s Office of Manufacturing and Energy Supply Chains, is set to support the development of the South West Arkansas (“SWA”) lithium project.In May 2024, Equinor entered into a strategic partnership with Standard Lithium, acquiring a 45% stake in lithium projects in Southwest Arkansas and East Texas. The SWA project, designed to harness Direct Lithium Extraction (“DLE”) technology, aims to address the growing demand for lithium — a critical mineral for electric vehicles and battery energy storage systems.The DOE funding will be used for constructing a processing facility in Lafayette County, AR. The project's first phase targets an annual production of 22,500 tons of lithium carbonate, doubling to 45,000 tons in two phases upon completion.Hege Skryseth, Equinor’s executive vice president for Technology, Digital & Innovation, highlighted that the DOE's support highlights the project's maturity and enhances its financial stability as it progresses toward a final investment decision. Skryseth also noted the collaboration with Standard Lithium and the local community as pivotal in advancing the U.S. lithium supply chain through innovative technology.The SWA project is undergoing critical evaluations, including a Definitive Feasibility Study and front-end engineering design. These studies aim to refine the project’s design and assess its potential for expansion. A positive final investment decision could lead to substantial local economic benefits, including up to 300 construction jobs and 100 permanent positions.With its advanced DLE technology, the SWA project plans to extract lithium from underground saltwater reservoirs, preserving vital water resources for agriculture and drinking purposes. The project aligns with the U.S. energy transition goals, addressing the critical need for domestic lithium production to power electric vehicles and renewable energy storage systems.Upon successful completion of the project, Arkansas will become a key player in the global lithium supply chain, enhancing economic development and fostering sustainable energy innovation.EQNR’s Zacks Rank & Other Key PicksEQNR currently carries a Zacks Rank #1 (Strong Buy).Investors interested in the energy sector may look at some other top-ranked stocks like SM Energy Company SM, Sunoco LP SUN and Range Resources Corporation RRC. While SM Energy and Sunoco presently sport a Zacks Rank #1 each, Range Resourcescarries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.SM Energy is set to expand its oil-centered operations in the coming years, with an increasing focus on crude oil, especially in the Permian Basin and Eagle Ford regions. The company’s attractive oil and gas investments should create long-term value for shareholders.Sunoco is a leading wholesale motor fuel distributor in the United States, boasting a vast distribution network spanning 40 states. With long-term contracts servicing more than 10,000 convenience stores, it distributes over 10 fuel brands, ensuring a stable revenue stream. Sunoco is poised to benefit from the strategic acquisitions aimed at diversifying its business portfolio.Range Resources is among the top 10 natural gas producers in the United States. Its diversified portfolio is spread between low-risk and long reserve-life Appalachian assets. The company’s extensive inventory of Marcellus resources with low breakeven points is a significant asset. With expanded LPG export capacity, RRC is well-positioned to meet the rising global demand, capitalizing on the role of natural gas as a cleaner-burning fuel amid a low-carbon shift. 7 Best Stocks for the Next 30 DaysJust released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.1% per year. So be sure to give these hand picked 7 your immediate attention. See them now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Range Resources Corporation (RRC): Free Stock Analysis Report Sunoco LP (SUN): Free Stock Analysis Report SM Energy Company (SM): Free Stock Analysis Report Equinor ASA (EQNR): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks