Big Oil and Pure Players are Leading Smackover Lithium Project Development: The Potential is There to Move the U.S. from Producing 1% of Global Supply to 20% or More

     Jordan Blum wrote an interesting piece in Fortune Magazine about upcoming lithium sedimentary brine projects being developed in the Smackover Formation, where direct lithium extraction (DLE) will be utilized. The article gives an update and timelines on ongoing projects and the plans of developers. These developers include Big Oil companies like ExxonMobil and Chevron and pure-play companies like EnergyX and Standard Lithium, which focus on brine extraction.

     With global lithium demand rising 400% this decade to 1.5 million metric tons per year for batteries to power grids, EVs, data centers, and automation, the demand is set to stick around for a while and will likely rise even higher. The U.S. only produces 1% of global supply, mainly from a single mine, the Silver Peak Mine in Nevada. However, other sources utilizing DLE are getting closer to coming online in the Salton Sea region of California and especially in the Smackover Formation in Southern Arkansas, East Texas, and Northwest Louisiana. Smackover brine has very high concentrations of lithium. Standard Lithium believes its leased land alone can produce 150,000 metric tons per year, about 10% of current global supply. The company is expected to initiate its Southwest Arkansas Project late this year and begin construction in 2027. Below is some information about Standard Lithium's Projects.

     Another company, EnergyX, led by Elon Musk acolyte Teague Egan, might break ground on a smaller 15,000 metric tons per year project in Texas next year after finding success at its 250-ton pilot project. They have plans to expand to 50,000 metric tons per year by 2031.

     ExxonMobil holds net 400,000 acres in the Smackover lithium play and plans a pilot project for 2027. Chevron holds 125,000 acres in the play. The process is simply to drill wells, produce the brine, extract lithium and a few other components like bromine, and return about 90% of the brine to the formation. There are no evaporation ponds. It has about 1% of the land footprint compared to production in the Lithium Triangle of South America. Norway’s Equinor is another late entrant in the play, entering as a joint venture partner.

     However, some challenges remain. DLE has yet to be proven at scale. DLE can extract lithium much faster than waiting for water to evaporate and precipitate the solid lithium. China does not lead the world in lithium mining but leads it in lithium processing. DLE offers a competitive processing method. Below is Standard Lithium's schematic model for a DLE plant.

     The article mentions the Thacker Pass project in Nevada, which is a 40,000-ton open-pit clay mine, which could be completed by the end of 2027. It could potentially produce 160,000 metric tons per year when it reaches peak production. Thus, it seems fair to predict that in five years or so, the U.S. could be producing much more domestic lithium.

     Standard Lithium notes on its website that it is continuing research into producing lithium sulfide (Li2S) for next-gen solid-state battery chemistries. They are working with a partner, Telescope Innovations, to convert lithium hydroxide into lithium sulfide via a simple, low-temperature process.

 

 

 

References:

 

A ‘geologic freak’ called the Smackover may end America’s lithium dependence on China, and Big Oil is already there. Jordan Blum. Fortune. November 7, 2026. A ‘geologic freak’ called the Smackover may end America’s lithium dependence on China | Fortune

The Future of Lithium in North America. Standard Lithium. Website. Standard Lithium Ltd.