Arkansas has the potential to become a key player in the growing lithium market thanks to its rich deposits, supportive regulatory framework, and a welcoming business environment, industry experts said at the 2nd annual Arkansas Lithium Innovation Summit.
The two-day summit, held at the Statehouse Convention Center, featured executives from ExxonMobil, Chevron, Standard Lithium, and Equinor discussing plans to extract lithium from the Smackover Formation in south Arkansas. Standard Lithium plans to begin construction on the region’s first direct lithium extraction facility in 2026.
“Arkansas has a first-mover advantage,” said Dr. Allison Kennedy Thurmond, vice president of North America lithium for Equinor. ExxonMobil’s Patrick Howarth described the state’s supply as a “world-class resource,” citing partnerships with Southern Arkansas University to train staff and develop extraction technologies. Chevron has also acquired significant acreage and is testing drilling programs.
Despite Arkansas’ advantages, China maintains a dominant global position, controlling much of the midstream processing that turns raw lithium into battery-ready material. Lithium prices have fallen sharply, from $71 per kilogram in 2023 to $9 per kilogram today, largely due to oversupply from China, said Simon Moores, CEO of Benchmark Minerals Intelligence.
“The U.S. is 10 years behind China,” said Standard Lithium President Andy Robinson. “The will is there. The technology is there. Let’s not kid anyone.” Developing midstream processing in the U.S. is critical to economic, energy, and national security, panelists said, as currently almost all purification and battery-grade production occurs in China.
State leaders, including Gov. Sarah Sanders, Secretary of Commerce Hugh McDonald, and U.S. Rep. Bruce Westerman, R-Hot Springs, stressed Arkansas’ commitment to workforce development, tax incentives, and the Arkansas Lithium Technology Accelerator to build a domestic lithium ecosystem.
The summit highlighted both the promise and challenges facing Arkansas as it seeks to expand beyond extraction into midstream processing, competing on the global stage while creating local jobs and economic growth.
For original reporting from Talk Business & Politics, click here.
WebReadyTM Powered by WireReady® NSI