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Arkansas' Smackover Formation Emerges as Potential Lithium Powerhouse for U.S. Supply

  • 27 Oct 2024 11:43 PM
  • Arkansas, Lithium, USA

The Smackover Formation in southwestern Arkansas could contain millions of tons of lithium, according to a recent report by the U.S. Geological Survey (USGS) and Arkansas Department of Energy and Environment. The lithium deposits estimated in this geological area represent between 35% and 136% of the current estimated lithium resources in the United States.

According to the study, lithium brines in the Smackover Formation may hold between 5.1 million and 19 million tons of lithium. This amount far surpasses the International Energy Agency’s projection that global demand for lithium will reach 717,000 tons by 2030.

The discovery of these substantial lithium reserves in Arkansas could significantly bolster the U.S.’s ability to domestically supply lithium, a crucial component for electric vehicle batteries. Researchers utilized lithium concentration data from brine samples to train a machine learning model that predicted potential reserves in the region. Published in Science Advances, the study analyzed samples from southern Arkansas and surrounding areas. High lithium concentrations were also projected in the nearby Cotton Valley Formation, though more data would be needed to confirm this.

USGS’s report focused solely on assessing lithium concentrations, with any commercial extraction and processing left to private industry, as noted by report co-author Katherine Knierim.

Currently, the U.S. imports over 25% of its lithium supply, with China accounting for 82% of lithium-ion battery imports in the second quarter of 2024, according to S&P Global. Within the U.S., there is currently only one active lithium project, located in Nevada.

Arkansas’s lithium potential has already attracted interest from major lithium producers. In November of last year, Exxon Mobil announced plans to establish a lithium extraction and processing facility in the Smackover region, with an expected operational start date in 2027. Exxon Mobil has not yet commented on how the recent discovery could influence its investment plans in Arkansas.

Standard Lithium, another major player, has also launched production projects in the Smackover region, positioning Arkansas as a prospective hub for this critical mineral.