The future of U.S. lithium production is gaining momentum in Arkansas because of companies like this Exxon Mobil, Albemarleand Standard lithium Make significant investments in the state.
Meanwhile, global demand for lithium continues to grow, driven by demand for electric vehicles and energy storage. According to the United States Geological Survey, global lithium consumption will reach 180,000 tons in 2023, up from 142,000 tons in 2022. but U.S. production is less than 1% of world supply.
While most of the world’s lithium still comes from countries like Australia, Chile and China, Arkansas could change that.
The state is home to the Smackover Formation, a geological formation rich in lithium brines.
“The quality of the lithium resource really makes this a great region,” said Wesley Hamilton, chief technology officer and vice president of research and technology at Albemarle, the world’s top lithium producer. “It comes down to two things. Thing: the concentration of lithium and the ability to efficiently extract lithium from brine.”
Arkansas has long been a producer of bromine, which is extracted from the same brine now used to extract lithium. According to reports, the formation contains more than 4 million tons of lithium, enough to power millions of electric vehicles and equipment. Primary battery energy. This has generated strong interest from companies looking to capitalize on the organization’s potential.
ExxonMobil, for example, acquired 120,000 acres in the Smackover Formation in 2023 and aims to begin producing battery-grade lithium by 2027. Electric car. Koch Strategy Platforms invests $100 million. DLE is touted as a greener extraction method that uses advanced filters to reduce energy and water usage.
However, the road ahead is not without challenges.
DLE technologyWhile promising, it has yet to be proven on a large scale and lithium prices have fallen sharply from over $80,000 per ton in 2022 to around $10,600 today. Benchmark said this was due to oversupply, slower-than-expected EV growth and new battery technology.
“Lithium prices are falling dramatically and many independent lithium companies are unable to generate the revenue they need,” said Shon Hiatt, business director of USC’s Energy Transition Initiative. “This volatility is critical for companies trying to scale up. It’s a huge challenge for the company.”
In addition, according to statistics, China controls 80% of global battery production atlantic counciltriggering concerns about U.S. supply chain risks.
Still, companies such as Albemarle and Standard Lithium told CNBC they remain optimistic about Arkansas’ potential to become a major player in the global lithium market.
“The United States has to step up,” said Robert Mintuck, CEO of Standard Lithium. “We are targeting the Smackover formation in Arkansas because we believe it is the best resource to develop.”
watch video Learn more about how Arkansas is positioning itself at the forefront of U.S. lithium production and what that means for the future of energy markets.
