Arkansas Pushes to Build Domestic Lithium Supply Chain

Arkansas officials and industry leaders say the state's Smackover Formation brine deposits, business‑friendly policies and public‑private partnerships could make it a world‑class lithium producer, and the two‑day Arkansas Lithium Innovation Summit drew hundreds of attendees including executives from ExxonMobil, Chevron, Standard Lithium and Equinor. Major firms have been buying acreage—ExxonMobil now holds roughly 300,000 acres and Chevron about 125,000—and Standard Lithium plans to begin construction of the region's first direct lithium extraction facility in 2026. Gov. Sarah Huckabee Sanders, Commerce Secretary Hugh McDonald and Rep. Bruce Westerman framed lithium as an economic driver and national‑security priority, promoting workforce training, university partnerships, incentives and an Arkansas Lithium Technology Accelerator to build domestic refining and manufacturing capacity. Panelists warned the U.S. lags China— which controls much of midstream purification and battery‑grade production—and pointed to a collapse in lithium prices from about $71/kg in 2023 to roughly $9/kg today as evidence of market strain and the need for U.S. processing capacity. Officials and industry executives said building conversion, refining and downstream manufacturing in Arkansas could generate billions in economic benefit and advance energy independence, but substantial technological, capital and competitive hurdles remain before a full domestic supply chain is realized.