Arkansas is sitting on what could be a game-changing discovery: a massive reserve of lithium worth an estimated $150 billion. According to the U.S. Geological Survey (USGS), the Smackover Formation in southern Arkansas contains between five and 19 million tons of lithium—enough to not only meet U.S. demand for electric vehicle (EV) batteries by 2030 but also position the state as a key player in the global transition to clean energy.
Lithium is a crucial component in EV batteries, and as countries worldwide push to phase out fossil fuel-powered cars, the demand for lithium has surged. Currently, the U.S. imports most of its lithium, but this discovery could dramatically shift that reliance.
USGS Director David Applegate emphasized the importance of this find, stating, “Lithium is a critical mineral for the energy transition,” highlighting its potential to boost domestic employment and strengthen the U.S. supply chain.
Several companies, including Exxon Mobil, are already on the ground in Arkansas, drilling exploratory wells to extract lithium from the brine wastewater produced by the state’s existing oil and gas operations. Exxon, which has secured the rights to 120,000 acres, drilled its first well in 2022 and aims to begin large-scale lithium production by 2027, with a goal of supplying enough metal for one million EVs annually by 2030.
Arkansas Governor Sarah Huckabee Sanders has embraced the development, calling South Arkansas the state’s “energy capital” and touting the jobs and economic benefits that lithium extraction could bring. She has pledged to cut taxes and reduce regulatory barriers to speed up the project, though specifics on what regulations might be rolled back have not yet been detailed.
However, as with any major industrial project, there are environmental concerns. Direct Lithium Extraction (DLE), the method being explored by companies in Arkansas, involves extracting lithium from brine wastewater, which is already produced by the region’s oil and gas industry. This process is seen as less invasive than traditional mining, but it still carries risks. Environmental groups, such as the Center for Biological Diversity, warn that DLE could lead to water contamination, increased use of freshwater resources, and harmful waste streams.
Chemicals like sulfuric acid, used in the lithium extraction process, could pose significant environmental hazards if not carefully managed. Sulfuric acid is highly corrosive and can harm local ecosystems, from plants and animals to soil and water quality.
Though proponents of DLE argue that the environmental footprint is relatively small compared to traditional mining, critics caution that there’s no such thing as a “free lunch” when it comes to extracting natural resources.
Despite these concerns, the U.S. Department of Energy (DoE) is showing strong interest in Arkansas’s lithium potential. The department is in discussions with companies like Standard Lithium and Lanxess, with the possibility of providing up to $225 million in funding to help construct a central lithium processing facility in the state.
If approved by the Environmental Protection Agency (EPA), this project could begin production by 2027, with the potential to yield more than 100,000 tons of lithium annually.
