Little Rock – Arkansas’ lithium fields are not anticipated to produce until 2028. Plans are underway to process bromine deposits found in the Smackover Formation in southern Arkansas.
Currently, the United States produces about 1 percent of the world’s lithium, which is used in advanced weapons systems, drones and as energy storage for electric vehicle batteries. Lithium production in the United States will help prevent our reliance on foreign suppliers and ensure we have our own steady supply of lithium for both military and domestic uses. To date, there is only one commercial lithium operation in the United States located in Silver Peak, Nevada.
Act 1012 was signed into law this year by the governor to foster the development of a new industry to produce lithium and its byproducts in south Arkansas. Currently, Standard Lithium plant is set to start operations in 2028 in Lafayette County and is expected to produce 22,500 tons of lithium in Phase One. ExxonMobil has been drilling exploration wells to better understand the resource and claims Arkansas’ supply has the potential to be a “world-class resource”. Also, the rights to 125,000 acres in eastern Texas and southwestern Arkansas are owned by Chevron, but the company has yet to set a royalty rate with Arkansas regulators.
According to industry leaders there is a lot of growth potential in the region. The possibility of more industries expanding is very favorable because it is not just the extraction, but the need to process and manufacture nearby. Arkansas leaders are calling for the state to become a lithium production hub. There is still plenty of infrastructure work that needs to take place to keep pace with foreign competitors and other domestic production in several states.
In October, the second Arkansas Lithium Innovation Summit, a two-day conference was held in Little Rock to discuss industry challenges such as building infrastructure and development of the workforce. Standard Lithium, which has partnered with Equinor, is building a $1.5 billion plant in southern Arkansas to include rail lines, roads, and water and sewer improvements. A 2.5 percent payment rate was approved by the Arkansas Oil and Gas Commission for brine extracted by Standard Lithium.
Southern Arkansas University (SAU) in Magnolia is teaming with lithium producers on joint ventures to train workers. The University was awarded $2.75 million through a workforce grant by the Arkansas Department of Higher Education HIRED program, using funding that was established by the Workforce Initiative Act of 2015. Some of the money will go towards training high school students for technical training on equipment used in the industries and creation of a mobile stem lab. SAU has developed a Bachelor of Applied Science degree and there are many education opportunities available through retraining, adult education, or apprenticeships for oil field workers. This will put Arkansas in a good position to create a supply chain centered on lithium.
