Post by : Badri Ariffin

Arkansas could soon become a key hub for U.S. lithium production as Standard Lithium receives unprecedented support from Washington. The Vancouver-based company is vying with Exxon Mobil to tap one of North America’s largest lithium reserves, signaling a growing U.S. push for domestic battery metal supply.

Multiple U.S. senators, the Department of Energy, and federal permitting authorities have thrown their weight behind Standard’s project this year, while international allies are reportedly considering debt financing for the venture.

Standard has been developing its direct lithium extraction (DLE) technology for over seven years. Exxon made waves in 2023 with a $100 million investment in Arkansas but has since delayed its plans by at least a year. Standard’s 30,000-acre Arkansas site still aims for first production by 2028.

The company faced a major setback in 2022 when a short-seller questioned its DLE process, causing its shares to plunge nearly 30% in a single day. Despite this, Standard pivoted its approach, partnering with Koch Industries to use a new adsorbent material and bringing in Norwegian energy giant Equinor as a partner for the $1.45 billion project.

“Standard has gone through multiple iterations of its technology, which we actually view as a strength,” said Allison Kennedy Thurmond of Equinor. Short-seller positions have dropped by more than half since 2022, and five Wall Street analysts currently recommend buying the stock.

Arkansas sits atop the Smackover formation, a vast underground reserve with brines containing over 5 million metric tons of lithium. The Department of Energy awarded Standard a $225 million grant in January to help process lithium from the region, and the company continues to meet regularly with federal staff. Fast-track permitting has been offered to help accelerate production timelines.

Standard projects lithium prices could rise to an average of $22,000 per metric ton over the 20-year project, with production costs estimated at $5,924 per ton. Talks with banks and foreign governments for $1 billion in project financing are reportedly ongoing, with decisions expected soon. Arkansas Governor Sarah Huckabee Sanders has also voiced strong support for the state’s emerging lithium industry.

As Washington increasingly prioritizes domestic lithium production, Standard Lithium appears well-positioned to become a key player in America’s battery metal future.

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