Smackover Lithium Phase 1 Approval Clears Path for U.S. Brine-Based Lithium Expansion

Smackover Lithium

The Smackover Lithium Phase 1 approval marks a major milestone for U.S. lithium production, as Arkansas regulators greenlight the company’s brine extraction plans. The Smackover Lithium Phase 1 approval allows the joint venture to begin developing its Reynolds brine unit as part of a broader strategy to scale domestic battery-grade lithium output.

Phase 1 Targets 22,500 t/yr from Reynolds Brine Unit

The Arkansas Oil and Gas Commission (AGOC) approved the establishment of a lithium brine production unit at the South West Arkansas (SWA) project. The Reynolds unit spans 20,854 acres and is set to produce 22,500 tonnes per year of battery-grade lithium carbonate. Full-scale Phase 1 production is targeted for 2028.

Smackover Lithium is a joint venture between U.S.-based Standard Lithium and Norwegian energy firm Equinor. The project is based in Lafayette and Columbia Counties and will be developed in two equal phases, ultimately reaching 45,000 tonnes per year.

U.S. DOE Grant Faces Political Uncertainty

The company received a $225 million grant from the U.S. Department of Energy in January 2025. However, this funding was placed on hold due to a presidential executive order issued by Donald Trump just days later, freezing clean energy funding programs.

Despite the uncertainty surrounding federal financing, Equinor and Standard Lithium remain committed to moving the project forward. Allison Kennedy Thurmond, Equinor’s VP of U.S. Lithium, emphasized ongoing collaboration with regulators and community stakeholders to secure a competitive royalty framework.

Direct Lithium Extraction at the Center of U.S. Supply Strategy

The Smackover project utilizes direct lithium extraction (DLE) technology, which offers a lower environmental footprint compared to traditional mining. As the U.S. seeks to localize battery supply chains, DLE projects like Smackover are gaining strategic importance.

Smackover’s Phase 1 approval places it among the leading North American lithium ventures, helping diversify global supply away from China-dominated sources and aligning with broader clean energy security goals.

The Metalnomist Commentary

The Smackover Lithium Phase 1 approval highlights the regulatory momentum behind U.S. lithium projects despite political headwinds. As federal funding remains uncertain, private and state-level partnerships will play an increasingly critical role in scaling brine-based lithium production.