Interview: State Sen. Steve Crowell Wants Lithium Supply Chain in Arkansas
This Week: Crowell Sees Lithium as Transformational for Arkansas
Lithium royalty approvals are a “huge first step,” Crowell tells Lithium Link, but power, housing and workforce remain top needs.
Act 1012 creates significant tax breaks and incentives to encourage lithium processing and manufacturing to remain in-state.
Let’s dive in!
Crowell: Keeping Lithium In-State is Arkansas’ Top Economic Goal
State Sen. Steve Crowell, R-Magnolia, said Arkansas’ top priority for its lithium reserves should be keeping the resource within state borders to build out an entire supply chain and related industries:
“Keeping this product within the borders and building these factories is going to be our No. 1 goal once these factories start going, because the amount of revenue and the amount of jobs that can be created by all the subsidiary companies is really that's when you start seeing that word ‘Midland, Texas,’” he said. “You start seeing Arkansas as a whole, getting bigger and bigger and bigger.”
In an interview with Lithium Link, Crowell cast direct lithium extraction in South Arkansas as a transformational opportunity for the entire state. He believes developing downstream industries like battery factories, recycling and component manufacturing will maximize the resource’s economic impact statewide.
Context: Crowell and Rep. Lane Jean, R-Magnolia, ran a lithium incentive package during the last legislative session to spur growth. SB568, which the Legislature approved and Gov. Sarah Huckabee Sanders signed into law as Act 1012, offers:
Tax incentives for companies doing business in Arkansas, including better incentives for those keeping lithium processing in-state.
Support for local employment, with incentives tied to hiring and purchasing within Arkansas.
Severance tax reform, ensuring future revenue growth goes directly back to the counties where lithium is produced.
What’s next: Crowell said the industry’s critical needs include:
Infrastructure and power to support new plants.
Housing development, with hundreds of new units needed in southwest Arkansas.
Workforce training, supported by a recent Higher Industry Readiness through Educational Development (HIRED) program grant for Lithium Learns and Lithium Works programs.
Between the lines: Crowell said while he doesn’t think lithium will bring “20,000, 30,000 people” to Arkansas, it will create stable jobs and reverse decades of population decline in South Arkansas.
The bottom line: Crowell is confident lithium development will happen and says policymakers must ensure Arkansas captures full value by keeping as much of the supply chain within its borders as possible.
More: Learn more about Lithium Learns and Lithium Works.
Crowell: Lithium Royalty Approval A ‘Huge First Step’ for South Arkansas
In another part of our interview, Crowell said the Arkansas Oil & Gas Commission’s approval of 2.5% lithium royalties was crucial for advancing the industry in South Arkansas.
“I really think it was a great first step in this process… It was the big one out there that everybody was concerned about,” he said.
Why it matters: Over the last several weeks, the commission has approved royalty rates for two South Arkansas brine units, one operated by Standard Lithium/Equinor and another by Saltwerx (ExxonMobil). Crowell noted lithium royalties are more complex than oil or bromine because lithium isn’t marketable at the wellhead — it requires “a very expensive process” to produce a final product.
What he’s hearing: Crowell said his constituents’ biggest questions regarding the lithium extraction industry are about timing and scale:
“When’s it going to be here? How fast is it going to be here, and how big is it going to be?”
He believes that while the industry won’t bring tens of thousands of people, it will create stable, diverse jobs after years of population loss.
Infrastructure needs: Crowell identified education and housing as top priorities to make the industry take off:
Education and workforce training: Crowell praised Sanders and Secretary of Commerce Hugh McDonald for using HIRED grants to support Lithium Learns and Lithium Works programs.
Housing: Crowell called housing a critical issue with a need for 400-700 new units. “I don’t think that this can get done organically. I think it’s going to have to be planned and really thought through,” he said.
Crowell also emphasized the need for energy infrastructure, citing the coming retirement of coal plants and supporting new energy legislation to enable future power generation, potentially including nuclear.
The bottom line: Crowell said the biggest fear he hears is the industry not materializing despite high hopes. But he remains confident: “[Lithium companies] wouldn’t jump into something with this much money and this much time if they didn’t really realize that it was needed.”
More: Read the state Department of Energy & Environment’s statement on the Saltwerx royalty decision.
Inside the Arkansas Lithium Incentive Package
Act 1012, sponsored by Crowell and Jean, creates broad tax exemptions and redirects severance tax revenue to local counties to spur lithium industry growth in Arkansas. Here’s a look at the law, which goes into effect on Oct. 1.
✅ Sales and use tax exemptions for:
Lithium extraction, processing, refining, conversion, manufacturing, recycling and battery production equipment.
Construction, expansion, operation and maintenance of qualified lithium facilities.
Electricity used by qualifying lithium and battery facilities.
✅ Eligibility criteria:
Facilities must invest at least $100 million within 10 years of construction start.
Must pay $3 million annually in direct and indirect compensation to Arkansas employees for two years after operations begin.
✅ Severance tax reform:
Keeps current general revenue allocations stable but directs future growth in saltwater severance tax revenue back to counties where production occurs, boosting local infrastructure funding.
✅ Broadened recycling definitions:
Includes electronic waste and lithium-ion battery cells in solid waste definitions for recycling-related tax credits.
✅ Approval process:
The Arkansas Department of Finance & Administration must approve or deny facility applications within 30 days, streamlining incentives.
Why it matters: The law aims to make Arkansas more competitive with Texas and Louisiana for lithium investment while ensuring economic benefits stay local, aligning with Crowell’s desire to see lithium stay “within the borders” and build out a robust lithium supply chain.
More: Read the act.
Register for the 2025 Arkansas Lithium Innovation Summit
🗓 Oct. 28-29, 2025
📍 Statehouse Convention Center, Little Rock, Arkansas
Registration is now open for the 2025 Arkansas Lithium Innovation Summit, a two-day event bringing together innovators, policymakers, industry leaders and community partners to advance Arkansas’ growing role in the national lithium economy.
Why you should attend:
Gain insights from leading experts in critical minerals, direct lithium extraction (DLE), battery production and clean energy technologies.
Network with key players, including startup founders, global investors, university researchers and local leaders shaping the lithium value chain.
Discover opportunities in workforce development, infrastructure planning and how South Arkansas is becoming a major hub for America’s lithium supply.
🎟️ Space is limited — sign up today on Eventbrite to secure your spot.
Plus: Learn about sponsorship opportunities.
Previously: A look at last year’s inaugural summit: Video | White paper
