A Proven, Predictable Framework: Arkansas’ Energy Chief on the State’s Lithium Advantage
This Week:
Arkansas Secretary of Energy and Environment Shane Khoury says decades of brine production have positioned the Natural State ahead of Texas and Louisiana in the race to develop lithium from the Smackover Formation.
Khoury discusses why Arkansas’ “stable, proven, predictable” regulatory system gives the state a first-mover advantage — and how the 2.5% royalty decision sets a fair standard for producers and landowners alike.
Plus, how the Department of Energy and Environment plans to streamline approvals as projects move from pilot to production.
Let’s dive in!
Shane Khoury on Arkansas’ Lithium Edge: ‘We’ve Been Doing This for Decades’
Arkansas’ top energy regulator said the state’s long experience managing brine production gives the Natural State a decisive lead over other states in the Smackover Formation, including neighboring Texas and Louisiana.
Shane Khoury, secretary of the Arkansas Department of Energy and Environment, told Lithium Link that the state’s deep history in bromine and oil production gives it a “stable, proven, predictable” regulatory foundation for lithium development:
“The advantage that we have is that we have this practice, and this history, and this regulatory framework that works — that we know that it works — and those states just didn’t have it,” he said.
Earlier this year, the Arkansas Oil and Gas Commission approved 2.5% royalty rates for lithium extracted from brine, a milestone Khoury called “a huge step” toward making Arkansas a world leader in lithium production.
The royalty formula ties payments to lithium carbonate equivalent output and market price, ensuring what Khoury described as “fair and equitable consideration” for mineral owners.
Khoury praised the “collaborative” process among companies, landowners and regulators: “It really didn't happen overnight. It was a lot of work by a lot of people over an extended period of time. And I give our commission and everyone involved credit for going through that process.”
Watch the Interview
‘An Orderly Regulatory Program’
Arkansas’ lithium boom sits atop the Smackover Formation, a brine-rich geological zone under parts of Texas, Arkansas, Louisiana, Mississippi, Alabama and Florida. Khoury said Arkansas’ long-standing brine statutes and permitting experience allow it to approve projects efficiently without sacrificing transparency — an advantage over states like Texas and Louisiana, which are aiming to get a piece of the lithium extraction industry.
“Our goal is to administer an orderly regulatory program that results in valid, defensible permits and actions,” Khoury said. “... And as we continue to move forward, we're going to continue to do that and involve stakeholders — involve all parties — balance the interests, [and] do it in an open and transparent way …”
What’s Next
In our interview, Khoury said he didn’t see a need for any additional legislation to help regulate the growing industry. He cited legislation brought earlier this year by state Sen. Steve Crowell, R-Magnolia, (whom we interviewed in July) and the Arkansas Department of Commerce that created tax incentives for lithium companies but also clarified the severance tax rate for lithium producers.
Moving forward, he said the department plans to standardize and streamline regulatory processes as the industry matures, eventually delegating routine matters to staff to shorten approval timelines.
“We’ll continue to monitor and evaluate our administrative processes to ensure that we’re keeping up to speed with adequate and necessary requirements,” he said. “I think we all know that technology changes — we’ve seen that in the Fayetteville Shale, for example — and we’ll just make sure that we're monitoring and staying on top of those processes.”
Like other state policymakers and industry boosters, Khoury envisions Arkansas not just as a lithium producer, but as a full-fledged manufacturing hub.
“...We want everyone to know that we want to be more than just the place where lithium is produced,” he said.
“We want [Arkansas] to be a place where we’re then able to take that to the next step where we’re making products, whether it be batteries or whatever else that needs to happen … for that lithium production here in Arkansas.”
The bottom line: Khoury says Gov. Sarah Huckabee Sanders’ administration is “cooperative and collaborative” — and ready to make Arkansas both the Natural State and the Lithium State.
What We’re Reading, Watching
Here’s a quick sample of other lithium-related news we’re reading and watching:
The Arkansas Lithium Technology Accelerator plans to announce its second cohort at this month’s Arkansas Lithium Innovation Summit in Little Rock. | Read the article
E+E Leader reports that Aquatech of Canonsburg, Pennsylvania, has finalized its acquisition of Koch Technology Solutions’ direct lithium extraction business, “a move aimed at consolidating critical pieces of the lithium production puzzle.” | Read the article
Charged magazine reports that Aquatech’s move “also includes a licensing agreement with Smackover Lithium.” | Read the article
The Magnolia Reporter shares the latest resources report by Tetra Technologies Inc. of The Woodlands, Texas, which says Tetra’s holdings in Columbia-Lafayette counties have more bromine and lithium than previously estimated. | Read the article
Get Tickets Now for the Arkansas Lithium Innovation Summit
🗓 Oct. 28–29, 2025
📍 Statehouse Convention Center — Little Rock, Arkansas
The 2025 Arkansas Lithium Innovation Summit — featuring a lineup of industry leaders and policymakers shaping the future of U.S. lithium production — is just around the corner, and it’s not too late to get tickets.
Why Attend?
✅ Hear directly from national and global leaders in lithium, energy and critical minerals
✅ Connect with startups, investors and innovators transforming the U.S. supply chain
✅ Explore opportunities in workforce, technology and infrastructure development across the Smackover region
🎟 Secure your spot now — Get Tickets Here
Previously: A look at last year’s inaugural summit: Video | White paper
