LITTLE ROCK (KATV) — A major milestone has been reached in Arkansas’ highly anticipated lithium boom—its first customers.

Smackover Lithium has secured the first binding offtake agreement with a commercial client for lithium extracted in Arkansas.

“So this lithium from Arkansas will find its way into global markets, ex China,” said Jesse Edmondson, Standard Lithium’s director of government relations.

Commodity trading firm Trafigura Trading has just signed a 10-year agreement to buy 8,000 metric tonnes of battery-quality lithium carbonate per year from Smackover Lithium’s South West Arkansas Project, a joint venture between Standard Lithium and Equinor, a Norwegian company.

For context, the U.S. as a whole only produces about 5,000 tonnes of battery-grade lithium a year.

“The SWA project, once in full production, will produce 22,500 tonnes per year,” Edmondson said. “So this 8,000-tonne-per-year agreement is significant, right? That’s over a third of our annual offtake.”

Last year, Standard Lithium received a $225 million grant from the U.S. Department of Energy to advance lithium extraction from the Smackover Formation, a briny aquifer beneath southern Arkansas that many hail as what could be America’s best domestic source of the critical mineral.

Beating companies like Chevron and Exxon to the punch, Standard Lithium pioneered direct lithium extraction and since 2020 has operated a demo plant in El Dorado. The company is building a larger facility in Lafayette County that is set to begin operation in 2028.

“We’ve got the only proven technology that works in the Smackover that’s been done through our commercial demonstration plant in El Dorado since May of 2020. And really that has been the proving ground which has unlocked a lot of the federal opportunities for us. So we’re the largest recipient of a DOE grant in the critical mineral space in this hemisphere,” Edmondson told KATV.

“So [we’re] really excited to bring lithium production to the state of Arkansas and really back to the United States. The U.S. used to be a leader in lithium production 40, 50 years ago. So it’s time to reclaim that status,” he said.

The market price of a tonne of battery-grade lithium is volatile, but has recently ranged between $10,000 to $12,000, so the value of what Standard Lithium alone is expected to produce could exceed a quarter of a billion dollars annually.

That’s not counting what Exxon, Chevron, and other companies may produce once they get up and running.

Joseph Flaherty

jflaherty@adgnewsroom.com

Joseph Flaherty covers the city of Little Rock for the Arkansas Democrat-Gazette. A graduate of Middlebury College and Columbia University’s Graduate School of Journalism, he has worked for the newspaper since 2020.

Arrests

Benton County Sheriff’s Office

Scott Minor, 45, of Elm Street in Jefferson City, Mo., was arrested Friday on suspicion of computer child pornography and sexually grooming a child. Minor was being held Monday in the Benton County Jail with a $150,000 bond set.

Bentonville

Damond Drake, 52, of West Highland Drive in Rogers was arrested Saturday on suspicion of delivery of methamphetamine or cocaine. Drake was being held Monday in the Benton County Jail with no bond set.

Fayetteville

Cornelius Anderson, 33, of Dawn Street in Fayetteville was arrested Saturday on suspicion of third-degree assault on a family member, third-degree domestic battery, first-degree criminal mischief and theft of property. Anderson remained at the Washington County Detention Center Monday in lieu of $5,000 bond.

Eduard Korshakov, 37, of Prairie Dunes Trail in Fayetteville was arrested Saturday on suspicion of aggravated assault on a family or household member, kidnapping, first-degree false imprisonment, third-degree domestic battery and interference with emergency communications. Korshakov remained at the Washington County Detention Center Monday in lieu of $25,000 bond.

Efrain Quiroz, 29, of North Shamblin Avenue in Fayetteville was arrested Sunday on suspicion of second-degree battery and second-degree endangering the welfare of a minor. Quiroz remained at the Washington County Detention Center Monday in lieu of $25,000 bond.

Leo Ward, 21, of West Tanner Drive in Fayetteville was arrested Sunday on suspicion of aggravated residential burglary and stalking. Ward was released from the Washington County Detention Center Monday on $25,000 bond.

Rogers

John Jenkins, 21, of Arkansas 351 in Jonesboro was arrested Saturday on suspicion of fraudulent use of credit/debit card. Jenkins was being held Monday in the Benton County Jail with no bond set.

Springdale

Ashlyn Neal, 19, of Powell Street in Springdale was arrested Saturday on suspicion of kidnapping, second-degree battery, endangering the welfare of a minor, resisting arrest and obstruction of government operations. Neal was released from the Washington County Detention Center Saturday on $5,000 bond.

Jose Neal, 37, of South Powell Street in Springdale was arrested Saturday on suspicion of second-degree domestic battery, third-degree domestic battery, interference with emergency communications and resisting arrest. Neal was released from the Washington County Detention Center Saturday on $5,000 bond.

Skyler Shane, 31, of Highway 62 in Westville, Ok., was arrested Sunday on suspicion of Possession of a Schedule I or II controlled substance with intent to deliver, simultaneous possession of drugs and a firearm, carrying a prohibited weapon and disorderly conduct. Shane was released from the Washington County Detention Center Sunday on $3,500 bond.

University of Arkansas Police Department

Celso Adame-Gallegos, 19 of Jade Street in Springdale was arrested Friday on suspicion of possession of a Schedule VI controlled substance with intent to deliver. Adame-Gallegos was released from the Washington County Detention Center Saturday on $5,000 bond.