Arkansas Brine Could Fuel America’s EV Future

Arkansas pilot proves faster lithium refining as US firms secure grants, studies, and momentum toward energy independence

5 Sep 2025

A pilot project in Arkansas has delivered promising results in direct lithium extraction, raising hopes that the US could secure more of its battery materials domestically and reduce reliance on imports from Asia and South America.

The test, confirmed on March 14, showed recovery rates above 99 per cent from the Smackover brine formation, an underused resource in the southern US. Unlike traditional evaporation ponds, which take months, the new method draws lithium from brine in hours, potentially lowering both costs and water use.

Standard Lithium, working with Norway's Equinor, underlined the commercial potential on September 3 when it released a definitive feasibility study. The report projected 22,500 tonnes a year of battery-grade lithium, with production targeted for 2028. Smaller facilities and faster cycles could offer automakers a steadier supply as they expand electric vehicle output.

Momentum built earlier this year when the Department of Energy awarded a $225mn grant to support the first phase of the Southwest Arkansas Project. The funding backs an initial 22,500-tonne annual output, with final investment decisions due by year-end. In May, regulators approved a 2.5 per cent royalty for landowners on extracted lithium, adding clarity to the project's economics.

"This is not just a pilot experiment anymore. It is a real pathway to domestic supply," Standard Lithium's chief executive said. By using existing oilfield infrastructure in Arkansas, the company hopes to move faster than competitors relying on overseas production.

Analysts warn that challenges remain. Scaling up from pilot results to industrial capacity will test both costs and technology. Market volatility in lithium prices could also affect long-term returns.

Still, rising demand from battery makers provides a strong incentive. At a time when Washington is seeking greater energy independence, the Arkansas breakthrough marks a step toward reshaping the US role in the global supply chain for critical minerals.