MAGNOLIA, Ark. — The Arkansas Department of Energy and Environment, Oil and Gas
Commission (Commission), approved an application today in Magnolia, Ark., establishing a
lithium compensation structure for SWA Lithium, LLC (SWA). SWA’s application concerns lithium
to be produced from the Reynolds Brine Production Unit, which encompasses more than 20,000
acres in south Arkansas. SWA’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. The Commission’s approval is the latest step in Arkansas’ development of
lithium in Arkansas.

Arkansas’ lithium will be extracted from brine located in the Smackover Formation in south
Arkansas. Arkansas producers have used the same brine resource to extract another critical
mineral, bromine, since the 1970s. In October 2024, the Commission’s Office of State Geologist
and the United States Geological Survey released a survey estimating lithium concentrations in
south Arkansas at 5 to 19 million tons.

“Lithium brine extraction in Arkansas is unique – it enables Arkansas to unleash its energy and
critical mineral potential in a way that results in minimal surface impact to the Natural State,”
said Secretary Shane Khoury. “The Commission’s approval of SWA’s proposal as fair and equitable
compensation signifies a huge step forward for Arkansas’s lithium industry.”

“Throughout this process, all parties wanted a payment structure that is fair, consistent, and
competitive, and today’s approval accomplishes this goal,” said Commission Chairman Jerry
Langley.

CONTACT:
Melony Martinez, Chief of Communications
501.682.0889 (office)
501.837.2093 (mobile)