US Targets 1 Million Tons of Lithium Production by 2035, Says DoE

Department of Energy (DOE)

The US Department of Energy (DoE) projects that the country could produce 1 million metric tons (t) of battery-grade lithium by 2035. This output would be sufficient to meet domestic demand while allowing for exports to trading partners.

Scaling Up Domestic Lithium Production

The DoE's Loan Programs Office Director, Jigar Shah, emphasized the need to expand lithium extraction, processing, and recycling to support the growing lithium-ion battery industry. He noted that diverse lithium resources across multiple US regions could be unlocked using advanced technology and infrastructure investments.

The US plans to increase lithium supply through three key sources:

• Spodumene deposits in Charlotte, North Carolina, expected to produce 100,000-150,000 t/yr of lithium carbonate equivalent (LCE).
• Albemarle’s Kings Mountain mine is one of the most advanced spodumene projects, projected to yield 50,000 t/yr of LCE.

• Brine and clay resources in Nevada, California's Imperial Valley, and the Arkansas Smackover Formation, estimated to contribute 500,000-1 million t/yr of LCE.
• These resources have lower lithium concentrations than South American reserves, but direct lithium extraction (DLE) technology can help process them efficiently.
• Recycling of end-of-life EV batteries, which could reduce the need for new lithium extraction, supplying 50,000-100,000 t/yr of LCE by 2035.

Government Investment in Lithium Infrastructure

The Biden administration has significantly increased investments in US lithium production to accelerate the clean energy transition.

In September 2024, the DoE selected 25 projects across 14 states, committing over $3 billion to expand domestic lithium supply. Additionally, the Thacker Pass lithium project in Nevada, operated by Lithium Americas, received a $2.3 billion loan to build a 40,000 t/yr lithium carbonate facility.

In December 2024, the DoE also allocated $17 million to 14 critical mineral technology projects, reinforcing efforts to scale up lithium production.

Lithium’s Role in the US Energy Transition

According to the US Geological Survey, the US has 1.1 million tons of lithium reserves, compared to a global total of 28 million tons.

Shah highlighted that advancements in direct lithium extraction (DLE) could rapidly unlock large lithium resources, much like hydraulic fracturing transformed the oil and gas industry.

With global lithium demand rising, the US is positioning itself as a key player in the lithium supply chain, reducing dependence on foreign imports and strengthening the clean energy sector.

US Allocates $3bn to Strengthen Domestic Battery Supply Chain

Department of Energy

The U.S. Department of Energy (DOE) has selected 25 projects across 14 states to receive over $3 billion aimed at boosting the domestic battery supply chain. This includes the production of batteries, critical components, and materials such as lithium, manganese, and graphite.

The DOE announced on Thursday that the funds will be used to "retrofit, expand, and build" manufacturing and recycling facilities throughout the United States. These projects will focus on various stages of battery production, including direct lithium extraction (DLE), production of cathode active materials (CAM), and the development of battery separators.

Key Investments in Lithium and Battery Recycling

More than $1 billion will be allocated to five major projects. Standard Lithium and Equinor's SWA Lithium joint venture, along with TerraVolta Resources, could each receive $225 million for DLE initiatives. Meanwhile, Cirba Solutions and Group14 Technologies have been earmarked $200 million each for lithium-ion battery recycling and silane production, respectively. Additionally, EnergySys Advanced Systems could receive $199 million to manufacture battery cells at its facility.

This funding will be distributed through the Office of Manufacturing and Energy Supply Chains (MESC) and is part of the Bipartisan Infrastructure Law. The final awards will be determined after negotiations between the DOE and applicants, along with environmental impact assessments for each project.

In October 2022, the DOE awarded $1.8 billion in the first round of funding for 14 battery materials processing and recycling projects under the MESC’s program.

U.S. Department of Energy Amplifies Commitment to Critical Mineral Technologies with $17 Million Investment

Infinite Elements

Strengthening National Energy Security through Advanced Material Innovations

The U.S. Department of Energy (DoE) has announced a significant investment of $17 million in 14 cutting-edge critical mineral technology projects. This strategic initiative, spanning 11 states, is poised to bolster the nation's energy security and enhance domestic supply chains essential for clean and advanced technologies.

Targeted Improvements Across the Board

These projects, orchestrated by the DoE's Critical Materials Collaborative, aim to refine manufacturing processes for key technologies such as hydrogen fuel cells, semiconductors for electric vehicles, and components for wind and solar energy solutions. The focus extends to magnets used in wind turbines and motors, alongside advancements in battery and electronic technologies.

Key domestic materials like lithium, nickel, cobalt, rare earth elements, platinum group metals, silicon carbide, copper, and graphite are under exploration to expedite their commercial readiness, as per the DoE's strategy.

Highlighting Innovative Projects and Collaborations

Among the 14 projects, four are dedicated to developing magnets that require fewer critical materials. These are taking place in notable institutions and companies including the University of Texas at Arlington, Iowa State University’s Ames National Laboratory, ABB Inc., and Niron Magnetics Inc.

Furthermore, the DoE has funded six projects focused on enhancing the processing and manufacturing operations of critical materials. Collaborators in these projects include Free Form Fibers, Virginia Polytechnic Institute and State University, the University of North Dakota, Ames National Laboratory, Tennessee's Oak Ridge National Laboratory, and Summit Nanotech Corporation.

Recovery and recycling efforts are also part of this initiative, with two projects aimed at reclaiming critical materials from scrap and recycled products. These are underway at Texas Agricultural and Mechanical University and the metal recovery company, Infinite Elements.

The initiative's final push includes projects designed to reduce critical material content in clean energy technologies, involving innovators like hydrogen specialist Celadyne Technologies and battery pioneer COnovate.

Toyota Secures $4.5 Million DOE Funding for EV Battery Recycling Technology

Argonne National Laboratory

Toyota, a global leader in automotive innovation, has received $4.5 million from the US Department of Energy (DOE) to advance cutting-edge electric vehicle (EV) battery recycling technology. This initiative aims to address critical bottlenecks in battery recycling, including automating pack disassembly, improving battery identification and sorting with data-driven methods, and mitigating challenges posed by cell degradation.

The Toyota Research Institute of North America will spearhead this project by developing autonomous robotic systems to disassemble EV batteries, an essential step toward enhancing sustainability and efficiency in the battery supply chain.

Efforts to Build a Sustainable Battery Ecosystem

As the demand for EVs grows, so does the volume of spent batteries and manufacturing scrap. Toyota’s initiative represents an effort to make the recycling process more sustainable, efficient, and scalable.

This latest project builds on Toyota’s growing portfolio of collaborations and research in battery recycling:

• April 2024: Partnered with Argonne National Laboratory to explore direct recycling processes for cathode chemistries containing critical minerals like nickel, manganese, and cobalt.

• Late 2023: Partnered with Cirba Solutions to enhance the collection, storage, testing, and recycling of spent batteries.

• 2022: Collaborated with Redwood Materials to focus on recycling hybrid EV batteries through improved collection and testing methods.

By working with leading recycling companies and research organizations, Toyota aims to ensure that its batteries are part of a closed-loop supply chain, reducing reliance on virgin materials and enhancing the sustainability of its EV production process.

The Path Ahead for EV Sustainability

This DOE-funded project underscores the increasing importance of a sustainable battery supply chain as EV adoption rises globally. By tackling technical challenges such as cell degradation and automation, Toyota is paving the way for scalable recycling solutions critical to the EV industry’s future.

SK On Secures $9.6B Loan for US Battery Plants, Boosting EV Production Capacity

BlueOval SK

South Korean battery manufacturer SK On has successfully secured a loan of up to $9.6 billion for the construction of three new battery plants in the United States. The plants, located in Tennessee and Kentucky, will have a combined production capacity of 120 GWh per year, primarily dedicated to supplying batteries for Ford Motor's electric vehicles (EVs), including models under the Ford and Lincoln brands.

Major Investment in EV Battery Production

This loan, the largest ever awarded under the U.S. Department of Energy’s (DOE) Advanced Technology Vehicles Manufacturing Program, is a significant step towards bolstering the country’s position in the rapidly expanding electric vehicle (EV) market. The funds will be used to develop three state-of-the-art battery production facilities, which are set to contribute to Ford’s ambitious EV production goals.

The collaboration between SK On and Ford Motor has already led to the formation of BlueOval SK, a joint venture designed to build the largest EV battery production operation in the U.S. Despite the recent slowdown in the EV industry, which prompted Ford to delay the construction of its second Kentucky plant in October 2023, production at the first two plants is still scheduled to commence in 2025.

Strategic Importance of the DOE Loan

This loan represents a key investment in the future of the U.S. automotive and energy sectors. As the U.S. seeks to meet rising domestic demand for EVs and maintain its leadership in the global electric vehicle market, the DOE's Advanced Technology Vehicles Manufacturing Program plays a vital role in providing financial support for innovative technologies. By securing this funding, SK On ensures it is well-positioned to support Ford’s EV ambitions while contributing to the nation's electrification goals.

With the ongoing growth of Ford's electrified vehicle sales—reaching 257,693 units between January and November 2024, marking a 40% increase from the same period last year—this new production capacity is expected to play a pivotal role in meeting rising demand. SK On’s battery production capabilities have also seen growth, with the company’s installations increasing by 9.5% year-on-year, capturing 4.5% of the global market share, according to SNE Research.

Talon Buys North Dakota Site for Nickel-Copper Processing Facility

Talon Metals

Former Coal Site to Host Critical Minerals Hub Backed by DOE Grant

Talon buys North Dakota site for nickel-copper processing, marking a strategic move to expand U.S.-based critical minerals infrastructure. The company announced it will acquire a 256-acre former coal mine site from Westmoreland Mining to establish its Beulah Minerals Processing Facility (BMPF). The new facility will process nickel and copper ore from the Tamarack JV—a Minnesota-based project Talon is developing with Rio Tinto.

The BMPF will help close a key gap in domestic nickel and copper refining, particularly for battery and energy transition supply chains. Talon plans to complete permitting by late 2026 and begin construction in 2027, aligning with U.S. strategic objectives to localize battery metal processing. The U.S. Department of Energy (DOE) previously awarded $114.8 million in funding to support the project, reinforcing its national significance.

Deal Structure Offers Flexible Payments and Future Delivery Incentives

The acquisition structure includes the transfer of property title in exchange for 15 million Talon share purchase options and a variable payment scheme. Talon will pay Westmoreland $0.50 per metric tonne of ore delivered to the BMPF, with total payments capped at $10 million. This model allows Talon to focus capital on facility development while ensuring Westmoreland benefits from future throughput.

As Talon buys North Dakota site for nickel-copper processing, it positions itself as a vertically integrated supplier of critical minerals for electric vehicles, grid storage, and defense technologies. The BMPF will also help reduce U.S. reliance on foreign refining capacity, particularly from China and Russia.

The Metalnomist Commentary

Talon’s strategic acquisition reflects the shift from coal to critical minerals in U.S. industrial land use. By leveraging DOE support and Rio Tinto’s upstream assets, the company strengthens its role in building a secure, domestic battery metals supply chain.

ICL to Build Lithium Battery Plant in the US with Aleees Partnership

ICL

ICL Starts Construction of US-Based LFP Battery Facility

Israeli specialty minerals company ICL has begun construction of a lithium iron phosphate (LFP) battery plant near St. Louis, Missouri. The facility will have a production capacity of 30,000 metric tonnes per year and is expected to start operations later this year.

This $400mn investment will be partially funded by a $197mn grant from the US Department of Energy (DOE). The grant falls under the Bipartisan Infrastructure Law, aimed at strengthening domestic clean energy supply chains.

However, the DOE funding remains frozen under an executive order signed by President Donald Trump in January 2025. Despite the uncertainty, ICL has proceeded with the project to establish its US footprint in the battery materials space.

Strategic Partnerships Secure LFP Technology Supply Chain

To support the project, ICL has partnered with Taiwan-based Aleees, a major LFP technology licensor. Aleees will help ICL establish a secure LFP supply chain for US electric vehicle and energy storage customers.

The partnership gives ICL access to Aleees' intellectual property and production expertise. Aleees also licensed its LFP cathode material technology to US battery firm T1 Energy, formerly Freyr Battery.

Meanwhile, ICL is also expanding its footprint in Europe. In January, it formed a joint venture with China’s Shenzhen Dynanonic to produce LFP cathode active materials for the European market.

The Metalnomist Commentary

ICL’s investment reflects a strategic move to onshore battery material production in response to growing US demand and political pressure. As LFP becomes the chemistry of choice for mass-market EVs and grid storage, securing localized supply chains will be critical for competitiveness and compliance. The real test will be whether DOE funding resumes under the evolving policy landscape.

Lithium Americas to Start Thacker Pass Build in May 2025

Lithium Americas to Start Thacker

Lithium Americas confirms Thacker Pass construction start in May, targeting production by late 2027 to boost U.S. lithium supply.

Thacker Pass Lithium Project Set for Major Construction Phase

Lithium Americas (LAC) will begin major construction at its Thacker Pass project in Nevada starting May 2025. The company aims to reach initial production by late 2027, reinforcing its role in North America's lithium supply chain. Engineering progress has already reached 55% and is expected to exceed 90% design completion by year-end.

LAC’s CEO Jonathan Evans emphasized the readiness to move forward after securing funding and partnerships. “Once we declare final investment decision, our team will focus on execution,” Evans said. This milestone follows the finalization of a $2.26 billion Department of Energy (DOE) loan in October 2024.

Funding and Strategy Behind the U.S. Lithium Push

In March 2025, LAC received a $250 million investment from Orion Resource Partners to support Phase 1 development. The DOE loan—secured under the Advanced Technology Vehicles Manufacturing Loan Program—will help build processing infrastructure. Meanwhile, LAC reported a $42.6 million net loss in 2024, up from $5.1 million in 2023, mainly from DOE and GM deal costs.

The Thacker Pass project is one of the most advanced lithium developments in the United States. Its strategic importance has grown amid increasing global demand for EV battery-grade lithium. The project also marks a significant step toward U.S. efforts to reduce reliance on imported lithium, especially from China.

The Metalnomist Commentary

Thacker Pass isn't just a mining project—it’s a cornerstone of U.S. energy security policy. As governments and automakers race toward EV adoption, domestic lithium supply is becoming as critical as oil once was. The Metalnomist will be watching closely as Lithium Americas enters this pivotal execution phase.

ESM Secures $1.36 Billion DOE Loan for Lithium Production in California

EnergySource Minerals (ESM)

Innovative Technology to Enhance Lithium Supply for EV Batteries

EnergySource Minerals (ESM) has taken a significant step forward in the U.S. battery materials sector by securing a conditional loan of up to $1.36 billion from the U.S. Department of Energy (DOE). This funding aims to bolster domestic production of lithium hydroxide, a critical component in lithium-ion batteries.

Strategic Investment in Sustainable Technology

The loan will support ESM’s subsidiary, SPV ESM ATLiS (ATLiS), in establishing a production facility capable of generating 20,000 metric tonnes per year of lithium hydroxide. This output is expected to supply approximately 52 GWh per year of lithium-ion batteries, crucial for the burgeoning electric vehicle (EV) market.

A Milestone for U.S. Lithium Extraction

Situated in Imperial County, California, near the Salton Sea, the ATLiS facility will utilize direct lithium extraction (DLE) technology. This innovative process, which has been piloted in multiple states including Utah, Texas, Nevada, and California itself, is set to be the first of its kind to operate at a commercial scale in the U.S., marking a pivotal development in local lithium production.

Syrah Resources Declares Force Majeure at Mozambique Graphite Plant Amid Civil Unrest

Syrah Resources

Sydney-based graphite producer Syrah Resources has declared a force majeure at its Balama operations in Mozambique, signaling significant disruptions due to post-election civil unrest in the country. The declaration comes as the company faced defaulted payments on debts backed by the US government.

Production Halt and Financial Strain

Syrah Resources reported that ongoing protests, which began in late September at the Balama site due to historical farmland resettlement grievances, have escalated following Mozambique's general election in October. Allegations of electoral fraud have led to violent protests across major cities, exacerbating the situation and preventing production activities. The unrest has not only halted production from October through December to replenish inventory but also hindered sales to customers, resulting in a declared force majeure event.

Implications of the Default

The unrest and consequent production stoppage have led to events of default on loans with significant US entities—the US International Development Finance Corporation (DFC) and the Department of Energy (DOE). The US DFC had previously extended a $150 million loan to Syrah for graphite operations, marking its first such financial engagement. Additionally, Syrah received a $102 million loan facility from the US DOE to expand its Syrah Vidalia anode active material facility in the US. The company is currently engaging with both entities to address the defaults.

Despite peaceful protest actions, which have not deliberately damaged property, plant, or equipment at Balama, Syrah acknowledges that resolving the situation will be a lengthy process. The company is striving to restore operations as quickly as possible. Notably, production at Balama has been on hold since July due to adequate existing inventory and low demand for graphite fines.

US Awards $521 Million to Expand EV Charging Network

The White House has announced $521 million in grants aimed at significantly expanding the electric vehicle (EV) charging infrastructure across the United States. This initiative is part of President Joe Biden’s broader efforts to promote EV adoption and reduce carbon emissions. The new funding will support the installation of over 9,200 charging ports nationwide.

Community and Corridor Projects

More than $320 million is earmarked for 41 community-level projects designed to expand local EV charging networks. Additionally, $200 million will be allocated to 10 projects along major transportation corridors, the Department of Energy (DOE) revealed on Tuesday. These investments are part of the 2021 bipartisan infrastructure law, which aims to bolster EV infrastructure as the country moves toward greener transportation solutions.

The funds will be distributed across 29 states, two Native American tribes, and the District of Columbia, providing critical support to projects in areas currently underserved by charging infrastructure.

Biden's 2030 Charging Target

The Biden administration has set an ambitious goal of deploying at least 500,000 public EV charging ports by 2030. As of now, the U.S. has approximately 192,000 charging ports, with 1,000 new ports being added each week. At this rate, the DOE projects that the nation will meet its 500,000 charger target by July 2030.

Challenges Facing EV Adoption

Despite the federal push for more EV infrastructure, the adoption of electric vehicles has slowed in the U.S. and globally. Major automakers have scaled back or paused their electrification plans due to high production costs, slow infrastructure rollout, and evolving customer preferences. This highlights the importance of continued investment in charging infrastructure to encourage wider EV adoption.

Element 25 Secures $166M US Grant for High-Purity Manganese Plant

Element 25

Louisiana Refinery to Strengthen North American Battery Supply Chain

Element 25 (E25) has received a $166 million grant from the US Department of Energy (DOE) to develop its high-purity manganese sulphate monohydrate (HPMSM) refinery in Louisiana. The project, set to begin construction on April 1, 2025, will refine manganese concentrate from the Butcherbird mine in Western Australia. This initiative aligns with the US government’s $3 billion plan to boost domestic battery materials production, reducing reliance on Chinese supply chains.

Strategic Financing and Automaker Partnerships

The DOE grant supports a critical part of Element 25’s financing strategy, supplementing an $85 million loan from General Motors (GM) and a $30 million investment from Stellantis in 2023. Under these agreements, E25 will supply 32,500 t/yr of HPMSM to GM and 10,000 t/yr to Stellantis. These partnerships reflect automakers’ efforts to secure stable battery material supplies amid increasing demand for manganese-rich battery chemistries.

Rising Demand for Battery-Grade Manganese

In 2024, global HPMSM production reached 300,000 tonnes, but analysts forecast a 1.2-1.3 million t/yr supply deficit by 2034 due to surging EV battery demand. The Louisiana refinery positions Element 25 as a key supplier in the North American EV supply chain, addressing the growing need for high-purity manganese in lithium-ion battery cathodes.

U.S. to Invest $14 Million to Boost Battery Recycling

The U.S. Department of Energy (DOE) will allocate $14 million to enhance consumer battery recycling. Under this initiative, office supply retailer Staples and battery retailer Batteries Plus will each receive $7 million to install recycling containers in their stores. This move will establish over 1,000 new drop-off locations nationwide, allowing consumers to dispose of old batteries and battery-containing devices, thereby reducing e-waste.

The DOE stated that recycling these batteries will provide essential materials for manufacturing new batteries and other electronic products like cell phones, laptops, and smartwatches.

Equinor and Standard Lithium Secure $225 Million for US Lithium Extraction Project

Equinor

Norwegian energy giant Equinor and Canadian firm Standard Lithium have received a $225 million grant from the US Department of Energy (DOE). The grant aims to establish a commercial-scale direct lithium extraction (DLE) facility in Arkansas, a critical step toward enhancing domestic lithium carbonate production.

The facility is part of the companies' joint South West Arkansas (SWA) project. Funds will specifically support constructing a processing plant designed to produce lithium carbonate, a key component in battery manufacturing.

Production Timeline and Capacity

Equinor and Standard Lithium anticipate making a final investment decision on the SWA project by the end of 2025. Once approved, the project's first phase of production is set to begin in 2028. Upon completion, the facility will boast an annual production capacity of 45,000 tonnes of lithium carbonate, significantly boosting the US lithium supply chain for battery production.

Rising Interest in Direct Lithium Extraction (DLE)

Direct lithium extraction has become increasingly attractive due to its environmental and operational advantages over traditional brine evaporation methods. Despite brine reservoirs containing approximately 60% of global lithium reserves, conventional evaporation processes only contribute about 35% of lithium production. DLE technology offers a more efficient and sustainable solution, prompting major industry players like Equinor and Standard Lithium to heavily invest in this emerging method.

In May 2024, Equinor committed up to $160 million for a 45% stake in two of Standard Lithium’s projects, including the SWA initiative. Their collaboration commenced operations at a pilot DLE plant in December 2024, marking a significant milestone toward achieving their ambitious production goals.

Largo and Stryten Launch Storion Energy to Boost U.S. Vanadium Redox Flow Battery Market

Largo

Largo and Stryten Energy have officially formed Storion Energy, a joint venture designed to produce vanadium electrolyte for vanadium redox flow batteries (VRFBs). The collaboration aims to strengthen the U.S. long-duration energy storage (LDES) sector by reducing reliance on imported vanadium-based energy solutions.

Storion will combine Stryten’s proprietary VRFB technology with vanadium pentoxide (V₂O₅) from Largo’s Maracás Menchen Mine in Brazil, providing a reliable domestic supply of vanadium electrolyte for U.S. battery manufacturers. The venture seeks to expand VRFB adoption as an alternative to lithium-ion batteries, particularly in applications requiring extended-duration energy storage.

Reducing Costs to Compete with Lithium-Ion Batteries

One of the major challenges for VRFB deployment in Western markets is the high cost of vanadium electrolyte, which accounts for 40-50% of a VRFB system’s total cost, depending on market vanadium prices.

Storion plans to supply vanadium electrolyte at just $0.02/kWh, well below the U.S. Department of Energy’s (DOE) target of $0.05/kWh for flow batteries that provide at least 10 hours of energy storage. This cost reduction is made possible by:

• Stryten’s advanced technology for efficient electrolyte production.

• Largo’s vanadium leasing model through Largo Physical Vanadium, which helps mitigate upfront material costs.

Strategic U.S. Manufacturing Presence

Storion Energy will operate out of Alpharetta, Georgia—where Stryten’s headquarters is located—and Wilmington, Massachusetts, home to Largo Clean Energy. This dual-location setup will enable efficient production and distribution of vanadium electrolytes, enhancing domestic energy security and accelerating VRFB commercialization.

Gunnison and Nuton Secure $13.9 Million Tax Credit to Boost US Copper Production

Gunnison Copper

Expanding American Copper Production at Gunnison’s Johnson Camp Mine

Significant Investment in Clean Energy and Mining Technology

Gunnison Copper and Nuton, a Rio Tinto venture, have secured a substantial $13.9 million tax credit from the US Department of Energy. This funding aims to enhance domestic copper production at the Johnson Camp mine in Arizona. With this investment, the site is set to ramp up its output significantly, utilizing cutting-edge sulphide leaching technology developed by Nuton to boost copper recovery efficiency.

Anticipated Impact and Production Timelines

Upon completion, the Johnson Camp mine expects to produce 11,340 tonnes of finished copper cathode annually. The first batch of copper is slated for production by mid-2025, aligning with growing demands for clean and sustainable resources. This initiative is part of a broader strategy to strengthen the U.S. position in the global metals market.

Future Prospects Amid Political Shifts

The mine’s expansion is part of a broader $10 billion initiative under the 2022 Inflation Reduction Act, designed to foster clean energy manufacturing and critical material projects. However, the recent inauguration of Donald Trump introduces potential uncertainties regarding the continuation of DOE funding for these initiatives, given his administration's energy priorities.

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.