Why All Eyes Are On Arkansas’ Lithium

Arkansas is emerging as a key player in U.S. lithium production, with major investments from companies like Exxon Mobil, Albemarle and Standard Lithium. The state’s lithium-rich brine in the Smackover Formation holds the potential to power millions of EVs and reshape energy storage. But, challenges like volatile lithium prices and unproven direct lithium extraction (DLE) technology could impact its growth. CNBC visited Magnolia and El Dorado, Arkansas to explore why the state is emerging as a key player in the lithium market and to examine the economic, technological, and strategic impacts of its extraction initiatives.

Chapters:
02:32 Title card - Why all eyes are on Arkansas’ lithium
02:39 Chapter 1 - Lithium in Arkansas
06:20 Chapter 2 - Direct Lithium Extraction
09:04 Chapter 3 - Challenges

Produced and Edited by: Lisa Setyon
Supervising Producer: Jeniece Pettitt
Narration: Katie Tarasov
Field Production and Camera: Matthew Spriggs and Jordan Wyatt
Animation: Mallory Brangan
Additional Footage: Standard Lithium, Albemarle, Exxon Mobil, Getty Images

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Why All Eyes Are On Arkansas’ Lithium

[brendanwiley]

The United States finds that they have been geographically blessed yet again

[ThatSpecificIndividual]

The good old cycle of rare resource being found useful> US lacks this resource > "US hegemony is finished" > Some farmer in the middle of nowhere finds a massive deposit of said resources > repeat.

[hammerdown]

Exxon-Mobil execs are fn smart... whether we drive EVs or gas powered cars in 20 years... they are still in business no matter what.

[frankcoffey]

From the graph at 2:00 it doesn't show lithium prices have "fallen" it shows they went back to normal after a panic peak.

[toddoverholt]

How much you want to bet that none of this newly found wealth will benefit the people of Arkansas at all? We're practically an extraction economy here, All the wealth goes to the rich executives and all the people are stuck living in extreme poverty as we have the highest poverty in the state

[Jazzbeu]

This area of Arkansas is really different from the rest of the state. I say that as someone who has lived in the Ozarks, the Delta, and Little Rock, as well as El Dorado. The area boomed in the first half of the 20th century with the oil industry, as well as the chemical processing that developed along side of it. Only couple of small refineries are left in El Dorado and Smackover. Chemical plants and timber became the economic mainstays after the oil boom ended. El Dorado has positioned itself as an arts and entertainment center for the region, while unsuccessfully exploring fracking to bring back the oil industry. Magnolia seemed to be benefiting from the growth of the local university, as it brought in large numbers of students from India to study technology. Nearby Camden has specialized in the defense industry technologies. The communities of southwest Arkansas seem to be in decline, but they have put up a good fight. Lithium may now prove to be the answer that bring economic success of the region.

[danielwhite]

El Dorado is pronounced differently in Arkansas. It’s El-Doe-Ray-doe.

[BetterSubstance]

Arkansas’ lithium boom has the potential to even weaken China’s „monopoly“ on EV supply chains, creating a more resilient and local source of critical materials not only for the US but for other countries like Germany or France looking to reduce their China exposure

[OvertheWheels]

The prices didn't fall, they just went back to normal. Another bubble popped.

[ashleydixon]

I’ve recently inherited a share of my mom’s family’s oil land south of Magnolia (along with my brother) and am currently in the process of looking into our options to make the most of this. When I was growing up, in the late 80s-early 90s, she was still receiving monthly royalties of about $200-300/month; these days it’s <$100 every six months. Lol
Mom died earlier this year, so now it’s up to us. Hopefully it’ll pay out for us like it did for her mother’s family: it wasn’t until I was grown that I really appreciated how rare it was to have a grandmother who graduated from college (U of Arkansas) in 1933. Her family obviously did much better through the Depression than most.

[koof]

Arkansas is the most Underrated state re future, prosperity, and scenic beauty~

[ramoraid]

the US needs to secure its own mineral resources and stop relying on other countries.

[ShaneSaxson]

You know what happens when you pull out that salt water. The above ground water fills the gap. Draining the drinking water into that aquifer. I’m from that area. It won’t slowly filter down over hundreds of years. It will just be years. There are millions of caves in that area that go extremely deep. Your sacrificing your water Arkansas. Not to mention gaining harmful waste products.

[chershaw]

This is where you need those chemistry classes.

[dpharr]

Note to reporters. Make sure you can pronounce the name of the towns correctly

[theraisiny]

Fun fact: lithium hydroxide has a spicy taste

[JoeyBlogs]

Sodium will exceed Lithium long term, once EV super charging becomes ubiquitous and thus battery energy density becomes less important. Basically a fast charging EV with a range of 200 miles+ will be more than adequate for most EV owners by then. More important is safety, fast charging and all weather battery performance.

[bascal]

This is what needs to happen across the United States, the legacy mine, coal, and oil workers, need training and money to pursue green energy projects!

[honuputters]

I grew up in Magnolia. There is another component in addition to the physical infrastructure surrounding the brine processing - a longstanding set of existing mineral rights leases. Magnolia has an interesting and varied economic history, as related to me by a longtime stalwart of the community - Archie Monroe - shortly before his death at age 105. There was a time when cotton was king and the regional cotton gin was in Magnolia, but then the locus of cotton production shifted to Texas. In the 1920's, oil was discovered in nearby Smackover, leading to an oil boom that lasted through WWII and beyond. When the oil tapered off, bromine from brine took over, especially during the era of leaded gasoline, where bromine was used for the anti-knock additive ethylene dibromide. The area is covered by pine forests, so lumber production has been a significant part of the economy for a long time. South Arkansas University, situated in Magnolia, also contributes to the economic base.

[Schminner]

I can't wait until we start mining for dilithium crystals... warp 9 here we come !!!!