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Arkansas aims to become US lithium hub, overcoming Chinese competition, tech challenges

Arkansas aims to leverage low electricity costs, skilled workforce, and direct lithium extraction technology to tap over 5 million metric tons of lithium in the Smackover formation.

  • This week, Arkansas officials said the state is vying to become the U.S. lithium hub using direct lithium extraction, leveraging its industrial workforce, low electricity rates, and permissive regulations.
  • The Smackover formation contains more than 5 million metric tons of lithium, enough to produce millions of electric vehicle batteries if filtered using direct lithium extraction.
  • Company leaders said Standard Lithium and Chevron are rushing to prove DLE can work in Arkansas despite low prices, with Andy Robinson stating, 'We spend a lot of time persuading people outside of Arkansas that this opportunity is real... for decades to come.'
  • Beyond technical questions, Benchmark Mineral Intelligence reports lithium prices plunged by more than 80% in 18 months, while Arkansas officials face stiff Chinese competition but say challenges are surmountable.
  • Roughly 860 summit attendees participated, an increase from last year, and Arkansas Governor Sarah Huckabee Sanders expressed confidence that DLE can succeed.
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Arkansas is accelerating the development of direct lithium extraction (DLE) technology with the goal of establishing a domestic supply chain of key lithium within the next five years, reducing its reliance on lithium imports from China. On Wednesday (October 29), Arkansas Governor Sarah Sanders, who served as White House spokesman during Trump's first term, expressed her belief that DLE technology will be a great success.

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Market Screener broke the news in on Thursday, October 30, 2025.
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