Jan 16 (Reuters) - Standard Lithium ( SLI ) said on

Thursday SWA Lithium, a jointly-owned unit with energy firm

Equinor ( EQNR ), has closed on a $225 million grant from the U.S.

Department of Energy(DoE).

The company said the grant, given by DoE's Office of

Manufacturing & Energy Supply Chains, will support construction

of phase 1 of the South West Arkansas (SWA) project, which is

expected to be one of the world's first commercial-scale Direct

Lithium Extraction (DLE) facilities.

DLE is described as a faster, more efficient and more

environmentally friendly process of extracting lithium, compared

with traditional methods which are slow, use excess water and

cause habitat disruption.

The project is located in Lafayette and Columbia counties of

Arkansas and is expected to produce 45,000 tonnes per annum of

lithium carbonate, developed in two phases of 22,500 tonnes

each.

SWA Lithium, owned 55% by Standard Lithium ( SLI ) and 45% by

Equinor ( EQNR ), is targeting a final investment decision by the end of

2025 with phase 1 production commencing as soon as 2028, the

lithium firm said in a statement.