Standard Lithium (SLI) and other companies are navigating new developments in Arkansas’ budding lithium industry. Last week, the Arkansas Oil & Gas Commission postponed a key hearing on royalty rates for lithium extraction in the region to a date yet to be announced. This decision follows protests by the South Arkansas Minerals Association against the proposed 1.28% royalty rate by companies like Standard Lithium, Albemarle, Lanxess, Tetra Technologies, and Saltwerx. These companies must now present data supporting their claims. Meanwhile, the U.S. Department of Energy has conditionally earmarked $450 million for Standard Lithium’s Southwest Arkansas project, in partnership with Equinor. This funding comes under the 2021 Infrastructure and Jobs Act, aimed at boosting U.S. competitiveness in essential metal production.

Royalty Rate Hearing Postponement

The Arkansas Oil & Gas Commission hearing to establish a royalty rate has been delayed. Administrative Law Judge Charles Moulton agreed to postpone the hearing to facilitate discussion among all parties involved.

DOE Funding for Regional Projects

The U.S. Department of Energy has offered conditional grants of $450 million for projects in southwest Arkansas. This includes Standard Lithium’s plan to extract lithium directly from brine using advanced technology. The company, in collaboration with Equinor, needs to secure matching funds to access these grants.

Global and National Implications

With global leaders such as China dominating lithium refinement, the U.S. is pushing to enhance domestic production. Robert Reynolds from the South Arkansas Minerals Association highlights the critical need for local processing infrastructure.

Economic Impact and Development

In addition to Standard Lithium’s projects, TerraVolta plans to invest in Texarkana, targeting substantial lithium resource development. This initiative aims to fill the existing gap in the lithium supply chain within the U.S. and strengthen the national economy.

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