Financing lithium a challenge, but Arkansas environment favorable

by Steve Brawner (BRAWNERSTEVE@MAC.COM)

Financing major lithium projects in south Arkansas will be a challenge because of the uncertainties surrounding the ventures, but Arkansas has a history in the extraction industry and a supportive political environment. Meanwhile, the United States will be advancing in an industry where China is already an aggressive player.

Those were two of the takeaways from the second day (Feb. 16) of the inaugural Arkansas Lithium Innovation Summit.

The summit brought to Little Rock nearly 700 energy sector executives, policymakers and stakeholders to discuss the growing lithium extraction industry in south Arkansas.

The excitement stems from Arkansas’ strategic position atop the Smackover Formation, a collection of saltwater brine 8,000 feet below the earth’s surface that stretches from Texas to the Florida panhandle.

Financing lithium a challenge, but Arkansas environment favorable

Arkansas lithium field to support ExxonMobil EV battery supply

by Talk Business & Politics staff (staff2@talkbusiness.net)

ExxonMobil disclosed Monday (Nov. 13) that its 120,000-acre stake in the Smackover Formation of south Arkansas will stand up a lithium drilling operation to support supplies for electric vehicle batteries as soon as 2027.

The dollar amount of the investment was not released.

In early 2023, ExxonMobil acquired the rights to 120,000 gross acres of the Smackover Formation in southern Arkansas, considered one of the most prolific lithium resources of its type in North America. Southwest Arkansas has a history as an oil and natural gas producer.

After using conventional oil and gas drilling methods to access lithium-rich saltwater from reservoirs about 10,000 feet underground, ExxonMobil will utilize direct lithium extraction (DLE) technology to separate lithium from the saltwater.

Arkansas lithium field to support ExxonMobil EV battery supply

U.S Rep. Bruce Westerman explains lithium development in south Arkansas

KUAR | By Ronak Patel

Earlier this year, Exxonmobil acquired the rights for a lithium brine reservoir in south Arkansas. Lithium is a key component that is used in electric vehicle batteries.

In an interview with Arkansas PBS’ Arkansas Week, U.S Rep. Bruce Westerman, R- Hot Springs, said the southern region of Arkansas potentially has enough lithium to produce about 15% of the world’s lithium. Westerman said the lithium in south Arkansas could grow the economy in that region.

“Now that lithium is a valuable commodity investors are anxious to be able to extract the lithium to meet even more demand. There’s talks the value of lithium could be more than the value of all the oil and gas produced in South Arkansas,” he said.

https://www.ualrpublicradio.org/local-regional-news/2023-08-20/u-s-rep-bruce-westerman-explains-lithium-development-in-south-arkansas

Arkansas PBS

In an interview with Arkansas PBS' Arkansas Week, U.S Rep. Bruce Westerman, R-Hot Springs, sees lithium as a boom to the local economy. The congressman also shared concerns about the region having the resources needed to accommodate the potential boom to the region.