How Oil-Rich Arkansas Became a Lithium Mining Hotbed

The U.S. lithium production landscape is changing as **ExxonMobil** (XOM), **Albemarle** (ALB), and **Standard Lithium** (SLI) invest in Arkansas. These companies are betting on Arkansas’ Smackover Formation’s richness in lithium brine. This shift is largely driven by the increasing demand for lithium, essential for electric vehicles and energy storage. In 2023, global lithium consumption surged, highlighting the urgency for more domestic production.

Lithium Brine in the Smackover Formation

Arkansas’ Smackover Formation is a significant lithium brine resource. **Albemarle** CTO, Wesley Hamilton, explains that the region’s high lithium concentration and efficient extraction capability make it a prime location. Traditionally a bromine source, this formation now offers over 4 million metric tons of lithium potential, enough to power millions of electric vehicles.

Key Investments and Developments

**ExxonMobil** acquired 120,000 acres in the formation in 2023, aiming to produce battery-grade lithium by 2027. Their goal is substantial: produce enough lithium for manufacturing over 1 million EVs annually by 2030. Similarly, **Standard Lithium** is enhancing its Direct Lithium Extraction (DLE) in El Dorado, backed by a $100 million investment from Koch Strategic Platforms. DLE aims to be more environmentally friendly, optimizing resource usage.

Challenges Ahead

Despite the promise, challenges like DLE’s scalability remain. Moreover, lithium prices have fallen due to oversupply and evolving battery technologies. With China controlling the majority of global battery cell production, there’s a need to strengthen the U.S. supply chain.

Future Prospects for U.S. Lithium Market

Despite obstacles, key players in the market like **Albemarle** and **Standard Lithium** remain optimistic. **Standard Lithium** CEO, Robert Mintak, highlights the strategic choice of the Smackover Formation, underscoring its potential as a key global lithium market player.

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