The southern state could become a ‘white gold’ boom town after the discovery of a lithium reserve worth $150 billion

Arkansas has a “hidden treasure” of lithium worth $150 billion that could meet global demand for EV batteries by 2030.

The US Geological Survey (USGS) has found between five and 19 million tons of lithium in the Smackover Formation. nine times as much as is needed to meet sustained demand for electric vehicles in the US by the end of the decade.

The metal is a necessary component for batteries used in electric vehicles and can be extracted from the brine of the same mines that produce oil and gas.

“Lithium is a critical mineral for the energy transition, and the potential for increased U.S. production to replace imports has implications for jobs, production and supply chain resiliency,” said USGS Director David Applegate.

‘This study illustrates the value of science in addressing economically important issues.’

Several companies, including Exxon Mobil, have already started drilling test wells to extract the lithium from 4,000 feet underground.

Global demand for lithium has increased dramatically in recent years as countries transition from using fossil fuels in gas-powered cars to electric and hybrid vehicles.

A $1.5 trillion lithium gold mine was discovered in the Smackover Formation in southeastern Arkansas

The lithium gold mine was discovered in an area rich in oil and bromine deposits dating back to the Jurassic geological period, which extends from Texas to Florida.

“Our study is the first to estimate the total lithium content present in the southwestern part of the Smackover, Arkansas,” said Dr. Katherine Knierim, a USGS hydrologist who conducted the study.

“We estimate there is enough dissolved lithium in that region to replace U.S. imports of lithium and more.”

The USGS study found that if companies were to mine lithium in addition to oil and gas operations, it would “provide an opportunity to extract a valuable resource from what would otherwise be considered a waste stream.”

“The current mining infrastructure in the Smackover Formation is associated with oil and gas extraction and brine mining (for bromine), which began in the 1930s and 1950s, respectively,” Dr. Knierim to DailyMail.com.

‘Essentially, lithium could be removed from the wastewater involved in these mining operations, before the wastewater is pumped back into the formation as usual.

“The footprint of this type of mining is much smaller and it is a fairly closed system.”

There are currently more than 46,000 oil and gas wells drilled in the state since 1925, and as of 2022, nearly 2,000 people live in Arkansas’ Smackover Formation.

Researchers used machine learning models to estimate the total amount of lithium in the Smackover Formation in Arkansas by comparing data from brine samples with data from historical samples in the USGS Produced Waters Database.

The machine learning model – a form of artificial intelligence – used the dataset to create maps of lithium concentrations across the region.

Several companies have acquired land where they will extract the lithium to meet global demand for electric vehicles

Companies have already started building lithium resources in Arkansas and hope to produce the metal for EV batteries by 2027

Exxon Mobil Corporation drilled its first lithium well in Arkansas last year after acquiring the rights to 120,000 gross acres of land.

The company aims to start producing lithium in 2027, and by 2030 it plans to produce enough of the metal to supply more than one million electric vehicles per year.

“South Arkansas is our state’s comprehensive energy capital, producing oil and natural gas, and now thanks to investments like ExxonMobil and their combination of skills and scale: lithium,” Arkansas Gov. Sarah Huckabee Sanders said at the time.

“My administration supports a comprehensive energy strategy that guarantees good, well-paying jobs for Arkansas – and we will continue to cut taxes and cut red tape to make that happen.”

The Southwestern Formation is an area rich in oil and bromine deposits dating back to the Jurassic geologic period and extending from Texas to Florida.

Huckabee Sanders hasn’t spelled out what red tape she would have to cut through to make lithium mining a reality in the state, but Exxon and other companies are looking at more expensive methods to access the metal.

One method is a direct lithium extraction (DLE) approach, in which the metal is extracted as brine from the existing waste stream, where oil and gas are already being removed.

Brine waste streams are highly concentrated salt solutions that contain more than twice as much salt as in natural brines, such as seawater.

Disposing of the waste can be challenging due to treatment requirements as it contains oil, grease and heavy metals that can affect groundwater quality.

Brian Umberson, a technology consultant in high-tech manufacturing and biotech diagnostics, said NPR that the DLE approach is “an extremely good process for southern Arkansas because it’s not like they’re pumping a huge amount of material out of the ground, creating pressure problems or whatever.”

“They just pump it out, take it out and pump it right back in.”

However, Patrick Donnelly, director of the Center of Biological Diversity, told the outlet that there is no such thing as obtaining the metal without causing a negative impact on the environment.

“It’s not neutral,” Donnelly said. “I mean, there’s no such thing as a free lunch. And there are consequences of DLE.

“Some of the impacts that we’ve heard about include using fresh water, like they’re not just going to use brine, they’re going to use fresh water to actually produce lithium.

“The other big impact we’ve been thinking about is waste streams, particularly a solid waste stream,” he continued.

“It’s impossible for them to extract just the lithium.”

Chemicals used in DLE, such as sulfuric acid, can contaminate soil and water and pose a health risk to people and wildlife.

Sulfuric acid is highly corrosive and is said to burn plants, birds, or animals exposed to it and cause respiratory irritation in humans, including immediate burning in the mouth and throat, headache, nausea, and vomiting.

Currently, there is no commercial lithium production in Arkansas. The US Department of Energy is in discussions with two lithium mining companies: Standard Lithium and Lanxess.

The DoE is considering providing up to $225 million to the Southwest Arkansas Project, which would build the first central lithium processing facility.

This is what David Park, CEO of Standard Lithium, says Fox that the project has the potential to produce more than 100,000 tons of lithium annually, but must receive approval from the Environmental Protection Agency (EPA) before breaking ground.

The first phase of the project is expected to start in late 2025 and start production as early as 2027.

DailyMail.com has contacted the USGS for comment on the environmental impacts of lithium mining in Arkansas.

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