This Arkansas Town Could Become the Epicenter of a U.S. Lithium Boom

"If the U.S. is to ease its dependence for lithium on other countries such as China, it may need this quiet corner of southwest Arkansas to lead the way," reports the Wall Street Journal, visiting the "thick-wooded back roads" and "crisscrossing fields where oil drillers gave up long ago" in Magnolia, Arkansas. (Population: 11,105)Exxon Mobil, a new player in the hunt for U.S. lithium, is planning to build one of the world's largest lithium processing facilities not far from Magnolia, with a capacity to produce 75,000 to 100,000 metric tons of lithium a year, according to people familiar with the matter. The Wall Street Journal reported in May that Exxon purchased 120,000 gross acres in the area for a price tag of more than $100 million. A consultant for the seller had estimated the prospect could have the equivalent of 4 million tons of lithium carbonate equivalent, enough to power 50 million EVs... To push the project forward, Exxon will have to profitably scale up the technology used to siphon lithium from brine, which for years has been an elusive goal across the industry... Exxon believes it can leverage its engineering prowess to become a low-cost domestic supplier of lithium, and has had discussions with battery and EV manufacturers, people familiar with the matter said. The company would also benefit from green-energy subsidies included in the Inflation Reduction Act, which allows for tax credits of 10% of the cost of producing lithium. Exxon, which is generally bullish about the future of oil and natural gas, is also preparing for a future less dependent on gasoline. Last year, it projected light-duty vehicle demand for internal combustion engine fuels could peak by 2025, while EVs, hybrids and vehicles powered by fuel cells could grow to more than 50% of new car sales by 2050. "Other companies including Standard Lithium and Tetra Technologies are planning to build capacity in the area..." Thanks to long-time Slashdot reader schwit1 for sharing the article.

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