South Arkansas is at the forefront of a rapidly expanding lithium boom with global implications, driven by a company named Standard Lithium.
Lithium is essential to modern technology. It powers smartphones, laptops, and the increasing number of electric vehicles. Arkansas is poised to become the leading source of lithium in the United States.
Standard Lithium is the first company to demonstrate that lithium can be directly extracted from the saltwater brine beneath southern Arkansas—the Smackover Formation aquifer.
The lithium brine in this region is of higher grade compared to other locations in the U.S.
Recently, the company secured a $225 million grant from the Department of Energy for their Southwest Arkansas project.
“So we’ve been running for five years, processing a little over 30 million gallons through the demonstration plant to validate the DLE technology,” said Chad Martin, vice president of U.S. operations at Standard Lithium.
Although Standard Lithium is a Canadian company, Martin and other leadership members in Arkansas are natives of the state, excited about the opportunity to elevate a region often overlooked onto the global stage.
National security considerations are also at play. Currently, China leads in the production of battery-grade lithium.
“We aim to establish South Arkansas as a hub for lithium production to ensure a domestic supply of lithium in the United States,” Martin explained. “This will reduce reliance on overseas sources and support the energy transition everyone is pursuing. We hope South Arkansas will lead this energy shift.”
The U.S. currently produces 5,000 metric tons of battery-grade lithium annually. Standard Lithium’s planned central processing facility in Lafayette County, scheduled to begin operations in 2028, will produce 22,500 tons per year. With a market price of nearly $12,000 per ton, this equates to a quarter of a billion dollars annually.
The Smackover Formation has the potential to yield up to 100,000 metric tons annually. Major energy companies like ExxonMobil and Chevron are acquiring extensive land around Standard Lithium.
Standard Lithium and Exxon have set royalty rates at 2.5 percent for property owners, which the South Arkansas Minerals Association has criticized as too low. However, Standard Lithium argues that the value of raw brine is minimal until processed.
“That’s a significant increase in value achieved through processing and proprietary advanced material processing, which adds value after the mineral extraction step,” stated Jesse Edmondson, Standard Lithium’s director of government relations.
Meanwhile, officials and academic institutions in South Arkansas are enthusiastic about the potential rejuvenation and opportunities lithium could bring to the region.
“The presence of chemical, oil, and gas companies has always been economically significant to the region, but the ability to directly extract lithium from the brine adds another layer of opportunity for the region, employment, and growth,” said Stephanie Tully-Dartez, president of South Arkansas College.
“By collaborating with educational partners and enhancing the workforce while raising K–12 awareness about lithium, we can significantly boost the success of Southwest or South Arkansas,” noted Valarie Smith, Standard Lithium’s community relations representative.
Phase one of Standard Lithium’s processing facility will directly employ approximately 100 people.
South Arkansas College has already established a lucrative 16-week pre-employment training program that creates a pipeline for locals to secure jobs at companies like Standard Lithium. A student named Angela was the program’s first success story.
“She was a part-time custodian at a local elementary school… When she went through Catalyst, she was hired by Standard Lithium,” said Jennifer Schroeder, executive director for Career Accelerator at South Arkansas College. “She started as an entry-level operator and is now working in the chem lab, performing chemistry tech work. Her salary immediately doubled. This program brought about a significant life change for her.”
Construction on Standard Lithium’s central processing facility is expected to commence next spring.
— News Original —
Meet Arkansas’ first lithium producers amid boom sparking land rush, economic hopes
South Arkansas is the epicenter of a fast-developing lithium boom that will have a global impact—and it was all sparked by a company called Standard Lithium.
Lithium is critical to the modern world. Your phone, laptop, and the electric vehicles we see more and more of all need lithium batteries. And Arkansas is about to become the best source of lithium in America.
At the center of it all is Standard Lithium, the first company to prove that lithium could be directly extracted from the saltwater brine underneath southern Arkansas—the Smackover Formation aquifer.
The lithium brine there is much higher grade than anywhere else in America.
The company recently received a $225 million grant from the Department of Energy toward their Southwest Arkansas project.
“So we’ve been running five years, a little over 30 million gallons processed through the demonstration plant to prove out the DLE technology,” said Chad Martin, vice president of U.S. operations at Standard Lithium.
Though Standard Lithium is a Canadian company, Martin and its other leadership in Arkansas are Natural State natives—excited that they are putting a part of the state that often feels left behind on the world stage.
National security is a factor. Currently, China is the world’s leading producer of battery-grade lithium.
“We look to have South Arkansas lithium production to have a domestic lithium supply here in the United States,” Martin said. “This will cut consumption coming from overseas and allow for that energy transition that everyone’s looking for. And we’d like for South Arkansas to be the leader in that energy transition.”
The U.S. only produces 5,000 metric tons of battery-grade lithium a year. Standard Lithium’s planned central processing facility in Lafayette County, which is set to begin operation in 2028, will produce 22,500 tons a year. The market price for one ton? Nearly $12,000. That comes out to a quarter of a billion dollars annually.
The Smackover Formation has the potential to produce a total of 100,000 metric tons a year. And big energy companies like ExxonMobil—and just last week, Chevron—are scooping up hundreds of thousands of acres all around Standard Lithium.
Standard Lithium and Exxon have both had royalty rates set by the Arkansas Oil and Gas Commission for the property owners from whom they are leasing land for lithium extraction. The rates for both are 2.5 percent, which the South Arkansas Minerals Association has protested as being too low. However, Standard Lithium says the value of raw brine extracted from the ground is insignificant until they process it.
“That’s a huge increase in value that’s done by that—really, that added processing and that proprietary kind of advanced material processing that really is value add that’s done on the back end of the mineral extraction step,” said Jesse Edmondson, Standard Lithium’s director of government relations.
Meanwhile, officials and academic institutions in South Arkansas are excited for the rejuvenation and opportunities lithium could bring to their region and its populace.
“The presence of those chemical, oil, and gas companies has always been important economically to the region, but the ability to now directly extract lithium from that brine has added another layer of opportunity for the region, for employment and for growth,” said Stephanie Tully-Dartez, president of South Arkansas College.
“By working with educational partners and increasing the workforce and working with the K–12 awareness of lithium, that will really increase the success of the Southwest or South Arkansas,” said Valarie Smith, Standard Lithium’s community relations representative.
Phase one of Standard Lithium’s processing facility will directly employ about 100 people.
South Arkansas College has already created a lucrative 16-week pre-employment training program that establishes a pipeline for locals to get jobs at companies like Standard Lithium. A student named Angela was the program’s first success story.
“She was a part-time custodian at a local elementary school… When she went through Catalyst, she wound up getting hired by Standard Lithium, and they accepted her,” said Jennifer Schroeder, executive director for Career Accelerator at South Arkansas College. “She went in as an entry-level operator. She’s now working in the chem lab and is doing chemistry tech work. And her salary immediately doubled. I mean, she just had a huge life change just because of taking the Catalyst program.”
Construction on Standard Lithium’s central processing facility is expected to begin next spring.