A cluster of lithium projects in Arkansas is moving closer to commercial production, raising the prospect that the US could significantly reduce its dependence on imported battery-grade lithium over the next decade.
The projects are centred on the Smackover Formation, a vast brine-bearing geological structure stretching across parts of Arkansas, Texas and several other southern states. According to estimates from the US Geological Survey, the formation could contain between 5 million and 19 million tonnes of lithium, making it one of the largest known lithium resources in North America. Recent interest has focused on extracting lithium from underground brines using direct lithium extraction (DLE) technologies rather than conventional hard-rock mining or evaporation ponds.
Among the most advanced developments is the South West Arkansas project being developed by Smackover Lithium, a joint venture between Standard Lithium and Equinor. The project is expected to produce 22,500 tonnes/year of battery-grade lithium carbonate during its first phase, with commercial production targeted for 2028. A final investment decision is expected this year.
Arkansas yield: 8,000 tonnes/year of battery grade lithium carbonate
In March, the joint venture secured its first binding offtake agreement, with commodities trader Trafigura agreeing to purchase 8,000 tonnes/year of battery-grade lithium carbonate over a ten-year period. The agreement covers more than 40% of the project’s planned first-phase output.
Standard Lithium has also reported continued progress at its Arkansas demonstration facility, announcing in April that it had processed more than one million barrels of lithium-rich brine and completed 15,000 DLE cycles using the same process planned for commercial deployment.
Meanwhile, ExxonMobil is pursuing its own lithium ambitions in the region through its Saltwerx subsidiary. The company acquired rights to approximately 120,000 acres in the Smackover Formation in 2023 and plans to use DLE technology to produce battery-grade lithium materials. Exxon has previously indicated that production could begin as early as 2027.
Chevron has also entered the sector, acquiring roughly 125,000 acres across northeast Texas and southwest Arkansas, while EnergyX, backed by General Motors, has expanded its own Smackover holdings through a series of acquisitions.
The growing interest from major energy companies reflects increasing confidence that DLE technologies can unlock commercially viable lithium production from brines that have historically been exploited for oil, gas and bromine. Unlike conventional evaporation ponds, DLE processes are designed to selectively extract lithium from brine before reinjecting the remaining solution underground, potentially reducing land use and shortening production times.
For the battery industry, successful commercialisation of Arkansas lithium projects could create a substantial domestic source of lithium carbonate for North American cell manufacturers at a time when governments are seeking to strengthen critical mineral supply chains and reduce dependence on imports from overseas producers and refiners. However, large-scale DLE remains relatively unproven commercially, and the ultimate success of the region’s lithium ambitions will depend on whether developers can achieve reliable production at competitive costs.
