What To Know About The Massive Lithium Discovery In Arkansas—And What It Means For EVs

22 Oct 2024 by Lindsey Choo · Forbes

Topline

Researchers have discovered a collection of lithium—a primary component in lithium-ion electric vehicle batteries—in Arkansas that, if recovered, could far exceed the projected world demand for lithium in car batteries in 2030.

A lithium mine in the Atacama Desert in Salar de Atacama, Chile, one of the world's largest lithium ... [+] producers. (Photo by John Moore/Getty Images)Getty Images

Key Facts

There might be 5.1 million to 19 million tons of lithium in the Smackover Formation brines in southern Arkansas, researchers at the United States Geological Survey and the Arkansas Department of Energy and Environment found.

The lithium mine, calculated using a machine-learning model and geological information that predicted maps of lithium concentration, represents 35% to 136% of the current amount of lithium estimated to be in the U.S.

Lithium could be extracted from the waste stream of the brines—deposits of groundwater rich in minerals—in the Smackover Formation.

The Smackover is already commonly used by energy and mining companies to produce oil, gas and other natural resources.

“We estimate there is enough dissolved lithium present in that region to replace U.S. imports of lithium and more,” Katherine Knierim, a hydrologist and the study’s principal researcher said in a news release.

Key Background

Lithium demand is projected to reach 1.5 million tons by 2025 and more than three million tons by 2030, growing exponentially due to the increased demand for electric vehicles. EVs accounted for 87% of lithium consumption, according to a 2024 report by the USGS. Nearly 14 million new EVs were registered globally last year, with sales seeing a 35% increase from 2022, according to the International Energy Agency. Battery cell production in North America will exceed 1,200 gigawatt hours by 2030, according to the U.S. Department of Energy, which is enough to supply at least 12 to 15 million new EVs annually.

Where Is Lithium Produced?

Australia, Chile and China—the leader in EV sales—are the three largest producers of lithium, the World Economic Forum reported. Australia produces more than 50% of the world’s lithium, with most lithium processing taking place in China. There is “potential for increased U.S. production to replace imports” with the new discovery in the Smackover Formation brines, USGS director David Applegate said in the release. Currently, the U.S. is still reliant on imports from Chile and Argentina for the bulk of its lithium, according to S&P Global. While the U.S. holds a large amount of lithium reserves, it only produces less than 2% of the global supply, and proposals for mining operations face opposition from climate activists. The Biden administration has encouraged various investments into lithium processing domestically – under the 2022 Inflation Reduction Act, energy companies were incentivized to extract and process materials used in EV batteries in the U.S. to qualify for tax credits.

What To Watch For

The study did not estimate the amount of lithium that could be extracted from the brines based on newer methods, but lithium could also be extracted from the waste stream of brines produced during oil and gas operations, the study said. Extraction projects are already ongoing at the Smackover Formation brines.