Equinor’s Lithium Extraction Play: A Billion-Dollar Bet on DLE in 2025

Industry Adoption: How Equinor is Commercializing Direct Lithium Extraction

Equinor’s journey into lithium extraction illustrates a dramatic strategic pivot, shifting from cautious exploration to aggressive execution. Between 2021 and 2024, the Norwegian energy major’s approach was defined by strategic, arm’s-length investments through its venture capital arm, Equinor Ventures. It placed bets across the battery value chain to gain market intelligence, investing in French geothermal lithium developer Lithium de France (November 2021), battery recycler Green Li-ion (March 2023), and all-solid-state battery firm Solid Power (May 2021). This period was about scouting the technological frontier. The inflection point arrived in May 2024 with the announcement of a direct partnership with Standard Lithium, committing up to $160 million for a 45% stake in tangible assets within the Smackover Formation. This marked a decisive move from portfolio diversification to becoming a project owner and operator.

The year 2025 represents a phase of accelerated de-risking and commercial validation. The partnership with Standard Lithium was formalized into the “Smackover Lithium” joint venture, and the strategy bore immediate fruit. The SWA project’s pilot plant achieved a critical technical milestone in March 2025, demonstrating over 99% lithium recovery from brine. This was swiftly followed by significant financial validation: the finalization of a $225 million U.S. Department of Energy grant in January and expressions of over $1.1 billion in non-binding financing interest by December. The filing of a Definitive Feasibility Study (DFS) in October 2025, projecting a robust 20.2% IRR, moved the project from a theoretical possibility to a bankable enterprise. This rapid succession of technical, financial, and regulatory validations in 2025 signals that Equinor’s DLE strategy is not just being adopted but is on a clear path to becoming a core, scalable business pillar.

Table: Equinor’s Strategic Investments in Lithium Extraction (2021-2025)

Table: Equinor’s Lithium Partnership Ecosystem (2021-2025)

Equinor’s Geographic Strategy: From Global Scouting to a U.S. Lithium Stronghold

Between 2021 and 2024, Equinor’s geographic approach to lithium was a calculated, dual-continent exploration. Through venture investments, it established a foothold in Europe, specifically in the Alsace region of France with Lithium de France, targeting the unique combination of geothermal energy and lithium extraction. Simultaneously, it was evaluating North America, which culminated in the landmark May 2024 partnership with Standard Lithium. This deal gave Equinor access to prime acreage in the Smackover Formation, a well-understood geological trend in Southwest Arkansas and East Texas, a region where oil and gas majors can directly apply their subsurface expertise.

From 2025 onwards, the geographic focus sharpened dramatically. While the European investment in France was reinforced, the center of gravity for Equinor’s lithium ambitions has decisively shifted to the United States. The series of 2025 events—including the opening of a field office in Lewisville, Arkansas, the finalization of the DOE grant, and the aggressive expansion of mineral rights in East Texas—demonstrates a strategy to build a dominant, large-scale production hub in North America. The announcement of the Franklin Project’s maiden resource in East Texas in November 2025 confirms this is not a single-project play but the foundation of a multi-asset, regional powerhouse. This concentration in the U.S. mitigates geopolitical supply chain risks and aligns with U.S. industrial policy to domesticate critical mineral production, creating a significant competitive advantage.

Technology Maturity in Equinor’s Lithium Strategy: From Pilot to Bankable in One Year

In the 2021–2024 period, Equinor’s technology strategy was one of portfolio-based learning. It invested in a spectrum of technologies at varying maturity levels: geothermal DLE with Lithium de France (pre-industrial phase), battery recycling with Green Li-ion (early commercial), and next-generation solid-state batteries with Solid Power (pre-commercial). The core bet, however, was on Standard Lithium’s DLE process, which was operating at a demonstration pilot scale in Arkansas. The risk was high, as DLE had not yet been proven in a large-scale commercial plant in North America. The strategy was to gain exposure and wait for a technology to prove its viability.

The year 2025 marked a quantum leap in technology maturation, primarily centered on DLE. The Smackover Lithium JV’s announcement in March 2025 that its pilot plant had successfully achieved over 99% lithium recovery was the single most important validation point. This result, achieved using actual brine from the project site, moved the technology from a promising pilot to a de-risked, commercially ready process. This was further cemented by the SWA project’s DFS in October, which based its robust financial projections on this proven recovery rate. The JV’s licensing of Koch’s Li-Pro™ technology also signaled a move toward assembling a best-in-class, commercially scalable technology stack. While geothermal DLE in France remains in the pre-industrial phase, Equinor’s primary DLE strategy for brine in the U.S. has effectively graduated from pilot to bankable in just over a year.

Table: SWOT Analysis of Equinor’s Lithium Extraction Strategy

Forward-Looking Insights: From De-Risking to Delivery in 2026

The torrent of positive developments in 2025 has set a clear and aggressive agenda for Equinor’s lithium ambitions in the year ahead. The primary signal to watch is the Final Investment Decision (FID) for the South West Arkansas project, targeted for the end of 2025. Given the successful technology de-risking, the $225 million DOE grant, and over $1.1 billion in financing interest, a positive FID is not a question of ‘if’ but ‘when’. This decision will be the starting gun for the project’s $1.45 billion Phase 1 construction, shifting the focus from financial and technical validation to project management and execution—Equinor’s traditional sweet spot. Market actors should closely monitor progress on the SWA project’s construction timeline, as this will be the real-world test of an oil major’s ability to deliver a complex chemicals processing facility.

Beyond SWA, the momentum is clearly behind scaling up. The maiden inferred resource report for the Franklin Project in East Texas, with its “highest-grade” brine, signals that this is the next engine of growth. Expect the Smackover Lithium JV to accelerate appraisal and engineering work in East Texas to fast-track its development toward the stated 100,000 tonnes per annum ambition. While the European geothermal play with Lithium de France remains a valuable, longer-term venture, the immediate, value-driving activity will be centered on building out a dominant lithium production hub in the U.S. Gulf Coast. For investors and competitors, the key takeaway is that Equinor’s lithium strategy has passed its major checkpoints; the race is now against time, cost, and the market.

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Frequently Asked Questions

What was the biggest change in Equinor’s lithium strategy between 2021 and 2025?
The biggest change was the pivot from being a passive, strategic investor to an active project owner. Initially, Equinor invested through its venture arm in various companies to gain market intelligence. This shifted dramatically in May 2024 with its direct partnership with Standard Lithium, committing up to $160 million for a 45% stake in tangible assets in the Smackover Formation, making it a project owner and operator.

What is Direct Lithium Extraction (DLE) and how has Equinor proven it works?
Direct Lithium Extraction (DLE) is the core technology used to selectively extract lithium from brine. Equinor, through its Smackover Lithium joint venture, proved the technology’s effectiveness in March 2025 when its pilot plant demonstrated a critical milestone: achieving over 99% lithium recovery from actual brine. This result moved the technology from a promising pilot to a de-risked, commercially ready process, which was a key factor in the project’s favorable Definitive Feasibility Study (DFS).

Who are Equinor’s main partners in its lithium business?
Equinor’s cornerstone partner is Standard Lithium, with whom it formed the “Smackover Lithium” joint venture (JV) to develop projects in Arkansas and Texas. Other key partners include Koch Technology Solutions (KTS) for the DLE technology license and Lithium de France, in which Equinor Ventures has a 24.40% stake, for developing geothermal lithium in Europe.

Why is Equinor focusing its main lithium efforts in the United States?
Equinor has decisively shifted its focus to the U.S. to build a dominant, large-scale production hub in the Smackover Formation (Arkansas and Texas). This strategy leverages the region’s well-understood geology, allows Equinor to apply its subsurface expertise, mitigates geopolitical supply chain risks, and aligns with U.S. industrial policy to domesticate the production of critical minerals.

What are the next major steps for Equinor’s flagship SWA lithium project?
The primary next step is the Final Investment Decision (FID) for the South West Arkansas (SWA) project, which is targeted for the end of 2025. Following a positive FID, the focus will shift to project execution, beginning the $1.45 billion Phase 1 construction. The project has already been significantly de-risked by a $225 million DOE grant and a strong Definitive Feasibility Study.