A significant lithium find in Southwestern Arkansas could hold up to 19 million tons of lithium, an essential component for electric vehicle batteries, energy storage systems for renewable sources, and other technologies. The U.S. Geological Survey (USGS) estimates that this resource, ranging from 5 to 19 million tons and constituting 35 to 136% of the current U.S. lithium resource estimate, could meet nine times the lithium demand for global car batteries by 2030. In 2021, the U.S. contributed merely 5% of the world’s lithium supply.
Exxon Mobil is among the firms investing in lithium extraction in this area, having acquired drilling rights for 120,000 acres within the Smackover Formation, a geological structure consisting of permeable limestone that spans parts of Arkansas, Louisiana, Texas, Alabama, Mississippi, and Florida. Lithium is found in the saline brine underground, previously deemed wastewater from local oil and gas operations. Exxon aims to start production in 2027, planning to generate enough lithium by 2030 to manufacture over a million electric vehicles annually.
As reported by the Verge, Exxon intends to utilize traditional oil and gas drilling methods to access lithium contained in saltwater approximately 10,000 feet below the surface. The company will also innovate new techniques for extracting lithium from the brine using chemical solvents or filters, a process known as direct lithium extraction (DLE). This method is touted as a quicker, more efficient, and environmentally friendly alternative to conventional techniques, although it still faces challenges related to costs, scalability, and environmental impact, according to Wood Mackenzie.
Presently, the majority of lithium is sourced from brine deposits in South America’s “lithium triangle”—spanning Argentina, Chile, and Bolivia—and hard rock deposits in Australia, with much of the processing occurring in China, which leads the EV battery manufacturing sector. In Chile, lithium brine is typically evaporated in ponds, leaving behind various minerals, including lithium salts, which are subsequently filtered and moved to additional evaporation pools. After between 12 and 18 months of this process, the mixture is filtered sufficiently so that lithium carbonate can be extracted. The process is relatively cheap but takes time and environmentalists worry that it may affect freshwater supplies as mining activities consume 65% of the water in Chile’s Salar de Atacama region. Exxon’s method is considered less energy-intensive than conventional hard rock mining for lithium used in Australia and it uses less land.
The viability of lithium extraction in Arkansas depends on whether these reserves can be commercially developed. The USGS, in collaboration with the Arkansas Department of Energy and Environment, used machine learning techniques to provide the first estimates of lithium concentrations in the Smackover Formation. Laboratory analyses of brine samples were compared with historical water data from oil and gas extraction to create a model predicting lithium distribution in the area.
According to the New York Times, federal researchers have pinpointed other potential lithium sources, such as the Salton Sea in Southern California, where Berkshire Hathaway Energy and other firms are extracting lithium from geothermal aquifers located over 4,000 feet underground. General Motors, for instance, is investing significantly in Australia’s Controlled Thermal Resources to mine lithium from geothermal sources in California’s Salton Sea Geothermal Field.
The Biden-Harris Administration Has Interfered with Critical Mineral Production in the United States
The Biden-Harris administration has complicated mining efforts in the U.S., revoking federal leases, employing regulatory actions to delay or cancel permits related to mining, air pollution, and water quality, and designating a flowering plant as “endangered” to hinder mining operations. Many U.S. reserves of cobalt, lithium, and nickel are situated near Native American reservations, posing a potential conflict with the administration’s commitment to racial equity and environmental justice. In April 2022, the Department of the Interior reversed a Trump-era decision that limited the scope of compensatory mitigation for projects on federal land, enabling bureaucrats to impose extensive requirements on permit applicants.
Details on two U.S. Lithium Mines Under Development pioneer Ltd.’s lithium mine in Nevada is expected to produce 22,000 metric tons of lithium annually, sufficient for 370,000 electric vehicles, but has faced rising costs due to environmental concerns over Tiehm’s buckwheat, a rare plant species. The Trump administration’s Interior Department contested these claims, attributing the threat to local squirrels instead, but environmentalists pushed the Biden administration to list the plant as endangered. Consequently, Ioneer has modified its mining plan to avoid the buckwheat and invested over $1 million in botanical studies. The Final Environmental Impact Statement (EIS) was released in September, and a Record of Decision (ROD) from the Bureau of Land Management is anticipated soon, which would allow Ioneer to commence construction in early 2025.
The Thacker Pass Lithium mine in Nevada could supply a quarter of the current global lithium demand and support battery production for up to 800,000 electric vehicles each year. However, it has encountered legal challenges from local indigenous groups, environmental organizations, and a nearby rancher who argue that the Interior Department’s environmental assessment underestimated impacts on groundwater, streams, and a threatened trout species, given its proximity to a historically significant site. The projected cost for the first phase of construction has risen to approximately $3 billion due to various factors, including the adoption of union labor, updated equipment costs, and necessary housing for construction workers, alongside legal and environmental delays. Production is expected to begin at the mine by late 2027.
Conclusion
The USGS estimates that Arkansas may hold as much as 19 million tons of lithium in salty brine, which Exxon intends to extract for use in electric vehicle batteries and other applications. Exxon’s challenge lies in developing new methods to separate lithium from brine using direct lithium extraction, which, while offering a more efficient and environmentally friendly option than traditional methods, still faces significant cost and scalability challenges similar to other lithium projects in the U.S. Currently, Australia and South America dominate global lithium production, while China leads in processing, relying heavily on inexpensive coal energy. Exxon plans to initiate production in 2027 but first must secure the necessary permits. Despite the Biden-Harris administration’s restrictions on U.S. mining, American companies are innovating to establish successful operations for the nation’s benefit.
