Lithium Link Celebrates Its 1st Anniversary and Looks Ahead
Welcome to Lithium Link, your resource for insightful news and expert commentary on the latest happenings in the Arkansas lithium scene.
This Week: Happy Anniversary to Us!
Lithium Link is a year old!
Lance Turner marks the anniversary with a brief look-back — and look ahead — to what’s coming in 2025.
Plus: Lithium news at the state Capitol as Arkansas lawmakers wrap the 2025 regular legislative session, and regulators take another step toward a lithium royalty.
LET’S DIVE IN!
Lithium Link: Year One in 60 Seconds
A year ago, Lithium Link launched following the first Arkansas Lithium Innovation Summit — and we’ve been tracking every major move in the state’s lithium story since. From significant investments to big interviews and heated debates over royalty rates, we’ve been on the front lines of Arkansas’ lithium rise.
WATCH NOW: A recap of our biggest stories, naming a few of the leaders we spoke with and spotlighting four key trends we’re watching in Year Two — including the return of the innovation event that sparked it all.
Whether you’re new here or a longtime reader, this is your 60-second refresher!
Stay plugged in by subscribing at lithium-link.com and following us on LinkedIn.
Royalty Watch: Commission Approves Standard Lithium Brine Unit
BREAKING NEWS as this edition of Lithium Link went to press this week: On Tuesday, the Arkansas Oil & Gas Commission unanimously approved the formation of the Reynolds Unit — the first official brine production unit for lithium in South Arkansas. The designation, proposed by Smackover Lithium, a joint venture between Standard Lithium and Equinor, clears the way for royalty-setting and full project development.
Why It Matters:
Under state law, lithium cannot be commercially extracted until a brine unit is approved and a royalty rate set.
The Reynolds Unit spans 20,854 acres across Lafayette and Columbia counties and could eventually yield 22,500 tons/year of battery-quality lithium carbonate
What It Means:
If all goes to plan, commercial production could start by 2028, bringing hundreds of construction and permanent jobs to the region.
Approval also sets the stage for one of the most contentious pieces: royalties.
What’s Next:
Royalty Rate Showdown: The commission must now decide what constitutes a "fair and equitable" royalty. That decision is expected by late May, and it’s the linchpin for greenlighting lithium extraction and enabling final investment decisions.
Political and Economic Stakes: State leaders, including Commerce Secretary Hugh McDonald, say getting the rate right is essential to attract global investment and build out Arkansas' share of the EV and battery supply chain.
More: See Standard Lithium’s news release on the commission’s approval, and read Arkansas Business’ full story.
Governor Signs Lithium Industry Tax Breaks Into Law
Arkansas legislators just wrapped the year’s regular legislative session, and one of the final batches of bills signed by Republican Gov. Sarah Huckabee Sanders was SB568, a sweeping tax incentive package aimed at accelerating the state’s burgeoning lithium and battery manufacturing sector.
What’s in the bill?
Sales and Use Tax Exemption: Qualified lithium-related facilities are now exempt from sales and use taxes on:
Equipment and materials used in lithium extraction, processing and recycling
Electricity used to power operations
Construction and operation services
Eligibility Criteria: Companies must:
Invest $100 million in Arkansas within 10 years of construction
Pay at least $3 million in employee compensation annually for two years
Receive a positive cost-benefit analysis from the Arkansas Economic Development Commission.
Bonus: The bill also adds lithium-ion batteries and electronic waste to the state’s recycling tax credit program — allowing a 30% credit for related equipment, the Arkansas Democrat-Gazette reports.
Our Take:
The law is good for companies like Standard Lithium Ltd., ExxonMobil, Equinor and Albemarle, which are planning multimillion-dollar lithium-related investments in South Arkansas. It also aligns Arkansas with other incentive-heavy states vying for leadership in battery supply chains critical to EVs and national security.
What’s Next:
SB568 takes effect Oct. 1 and could help Arkansas attract more lithium infrastructure, manufacturing and workforce development in the coming years. It’s a significant win for the state’s economic development playbook — and a key signal to the global clean energy market.
More: Read the full text of the bill.
