MAGNOLIA, Ark. — The Arkansas Department of Energy and Environment, Oil and Gas Commission (Commission), approved an application establishing a lithium compensation structure for Saltwerx, LLC today at a special hearing in Magnolia, Ark. Saltwerx’s application concerns lithium to be produced from the Pine Brine Production Unit, which encompasses more than 56,245 acres in south Arkansas. Saltwerx’s application requested the Commission approve an additional lithium payment of 2.5% of the lithium carbonate equivalent in addition to a brine fee already established by law.
Last month, the Commission approved an application for SWA Lithium, LLC for the Reynolds Brine Production Unit consistent with the 2.5% rate approved today.
“This decision reinforces the Commission’s commitment to fairness and consistency in Arkansas’s emerging lithium industry,” said Commission Chairman Jerry Langley. “By aligning with the structure approved last month for production in new areas of the state, we’re creating a reliable and competitive foundation for growth in this vital sector.”
Lithium development in Arkansas centers on brine resources found deep within the Smackover Formation, a geologic formation in the southern part of the state. For decades, Arkansas producers have successfully extracted bromine from these same brine reserves, establishing a strong foundation for mineral production. A joint survey released in October 2024 by the Office of State the Geologist and the U.S. Geological Survey estimated lithium concentrations in the region to range between five and 19 million tons—highlighting the area’s significant potential.
“Arkansas is poised to become a national leader in lithium production, and today’s approval marks another step in that direction,” said Shane Khoury, Secretary of the Arkansas Department of Energy and Environment. “We’re advancing a model that balances innovation, stewardship, and equitable economic opportunity for landowners and industry alike.”
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