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

Arkansas aims to leverage its lithium-rich Smackover formation and low electricity costs despite an 80% lithium price drop and Chinese competition, officials said.

  • In Little Rock, Arkansas officials and industry executives said the state is vying to become the U.S. lithium hub despite competition and that the Smackover underground geological formation holds more than 5 million metric tons of lithium, per the U.S. Geological Survey.
  • Relying on low electricity rates and industrial expertise, Arkansas bets on its workforce and permissive regulations to attract projects using direct lithium extraction .
  • Industry executives signal confidence as Exxon, which has delayed its lithium plans to 2028, and firms like Standard Lithium and Chevron rush to prove DLE, with Andy Robinson stating it can supply North America for decades.
  • Domestic supply remains thin as Benchmark Mineral Intelligence found lithium prices have plunged by more than 80%, while Albemarle operates the only U.S. lithium mine in Nevada.
  • Governor Sarah Huckabee Sanders said she is confident DLE can succeed and rejects state government policy on price guarantees, adding `I don’t own rockets, but it’s still something we’re really good at manufacturing.
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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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