The March Toward a Lithium Royalty Begins Anew
Welcome to Lithium Link, your resource for insightful news and expert commentary on the latest happenings in the Arkansas lithium scene.
This Week: The March Toward a Lithium Royalty Begins Anew
A critical step in the state’s ongoing effort to set royalties for lithium extraction is scheduled for April 22 in El Dorado.
Plus: A wave of electric vehicle and battery manufacturing projects across the U.S. is being canceled amid uncertainty about tariffs and tax credits.
Bonus: What we’re listening to: A University of Arkansas podcast examines Arkansas’ lithium opportunity.
Let’s dive in!
Arkansas Lithium Royalty Process Advances as Brine Unit Applications Head to April 22 Hearing
A critical step in the state’s ongoing effort to set royalties for lithium extraction is scheduled for April 22 in El Dorado. Two companies — Saltwerx LLC (an ExxonMobil affiliate) and SWA Lithium (a joint venture between Standard Lithium and Equinor) — have filed formal applications to establish lithium brine units in South Arkansas, according to Ainsley Platt at the Arkansas Advocate.
Why it matters: Under the Arkansas Brine Conservation Act (ABCA), no lithium can be commercially extracted until:
A brine unit is formed — a defined area designated for brine extraction.
A royalty rate is approved — ensuring landowners with mineral rights are fairly compensated.
Both steps must be approved by the Arkansas Oil & Gas Commission, and past efforts to bypass unit-specific royalties were rejected.
Flashback: In 2024, a joint royalty application from Saltwerx, Standard Lithium and other South Arkansas lithium players was denied for failing to link royalties to specific brine units. A judge ruled that royalty determinations must be made on a unit-by-unit basis, following the letter of Arkansas law.
Now compliant with those legal requirements:
SWA Lithium is proposing the Reynolds Unit (about 20,854 acres).
Saltwerx is proposing the Pine Unit (about 56,245 acres).
What’s next: According to the Arkansas Advocate, the Oil & Gas Commission will consider these applications at its April 22 hearing in El Dorado. If approved, both companies are expected to file royalty applications.
Big picture: Arkansas lithium leaders and economic developers think that achieving this regulatory milestone will unlock investment and job creation tied to direct lithium extraction (DLE) in South Arkansas.
More: Read Platt’s complete Arkansas Advocate story.
Previously on Lithium Link: Inside the Royalty Rate Rejection; Standard Lithium Aims to Propose Royalty This Spring
Report: EV, Battery Factory Cancellations Spike Amid Policy Turmoil
The Washington Post reports that a wave of electric vehicle and battery manufacturing projects across the U.S. is being canceled — signaling trouble for the clean energy transition:
In Q1 2025 alone, more EV-related projects were canceled than in the previous two years combined, according to an April report by Atlas Public Policy, a strategic research firm that focuses on vehicle electrification, clean energy and climate policy.
Major cancellations include a $1.2 billion lithium-ion battery plant in Arizona and a $1 billion thermal barrier facility in Georgia.
The surge in project development over recent years was fueled by incentives from the Inflation Reduction Act, which aimed to stimulate U.S.-based EV and battery production.
These projects were often planned in Republican-led regions, promising economic revitalization and clean energy jobs, the Post reports.
But: Policy instability is rattling investors and manufacturers:
New tariffs under President Trump and uncertainty around tax credits and regulation are stalling or sinking projects.
“Nothing is more important to business than market clarity,” Bob Keefe, executive director of nonpartisan nonprofit E2 (Environmental Engineers) of Washington, D.C., told the Post. “It’s about as clear as a blizzard at midnight.”
While some projects are officially canceled, hundreds of millions in planned investments are now paused, with their future unclear.
The bottom line: Policy confusion is creating a chilling effect on clean energy manufacturing in the U.S., undermining momentum toward domestic EV production and job creation.
UA Podcast ‘Short Talks from The Hill’ Spotlights Arkansas' Lithium Opportunity
The University of Arkansas' research and economic development podcast, “Short Talks from The Hill,” recently aired an episode exploring how Arkansas could become a major player in the global lithium market.
Hosted by Todd Price, the episode features Erik Pollock, a UA geoscientist who breaks down the science, economics and environmental impact of lithium extraction from the Smackover Formation in Southwest Arkansas.
In the episode, Price and Pollock discuss:
What makes lithium essential: From phones to electric vehicles, lithium-ion batteries are powering the modern world, and demand is expected to grow.
Why Arkansas matters: The Smackover Formation holds an estimated 5-19 million tons of lithium, enough to supply the world’s demand through 2030 — nine times over.
How it’s extracted: Arkansas’ lithium will be pulled from underground brine using direct lithium extraction (DLE), a cleaner, surface-minimal method that avoids the pitfalls of traditional mining.
Economic implications: The episode explores how lithium development could bring decades of steady employment and economic growth while serving as a launchpad for broader battery and supply chain manufacturing in the state.
Environmental upside: Unlike mining operations elsewhere, Arkansas’ DLE approach has very little waste and no open-pit mining — a major plus for sustainability.
More: Listen to the full episode here: “Lithium Boom: The Prospects for Arkansas.”
