On October 31, 2025, in Arkansas, the United States, there is a swift movement towards implementing Direct Lithium Extraction (DLE) technology. The goal is to establish a domestic American lithium supply chain within the next five years, thereby reducing dependence on importing lithium from China.
The Governor of Arkansas, Sarah Sanders, who served as the White House Press Secretary during the first term of President Trump, expressed confidence in the success of DLE technology. The state government has formed partnerships with energy giants such as ExxonMobil, Standard Lithium, and Chevron to target over 5 million tons of lithium resources in the Smackover Formation in an effort to position Arkansas as a hub for lithium supply in the United States, bringing prosperity to the state.
DLE technology is faster and has a smaller environmental footprint compared to traditional extraction methods. For petroleum companies skilled in drilling, pumping, and fluid handling technologies, this presents an ideal path towards diversifying their business.
During the “Arkansas Lithium Innovation Summit,” Governor Sanders affirmed her unwavering confidence in the success of the DLE project.
She stated, “Big corporations would not invest billions of dollars if they did not see the potential for development.”
Sanders added that she hopes Arkansas becomes a major lithium production hub in the United States.
In April of this year, the Arkansas legislature passed a law providing tax incentives for lithium producers and battery manufacturers to encourage investment.
Lithium is a crucial mineral used in manufacturing lightweight lithium-ion rechargeable batteries, widely applied in smartphones like the iPhone, computers, electric vehicles, solar panels, and utility-scale energy storage systems.
Data from the United States Energy Information Administration (EIA) shows that nearly 30% of the raw materials needed by domestic manufacturers are imported, with a significant portion from China. China accounts for 90% of the global export of materials used in lithium-ion batteries.
Due to China’s excess production capacity, lithium prices have plummeted by 80% in the past 18 months. Nevertheless, ExxonMobil announced plans to commence commercial production in 2028.
Patrick Howarth, the head of ExxonMobil’s lithium business, expressed their commitment to enhancing Arkansas’s competitiveness at the summit.
Standard Lithium is also collaborating with the Norwegian National Oil Company to develop the DLE project in Arkansas.
Andy Robinson, the CEO of Standard Lithium, stated, “We have spent significant time convincing outsiders to Arkansas that this opportunity is real, with low production costs, and will become a reliable source of lithium chemicals in North America for decades to come.”
This emerging industry has garnered strong support, including from President Trump, who has consistently advocated for domestic production of critical minerals. In April of this year, the Trump administration approved Standard Lithium’s pilot lithium plant project as one of ten key mineral projects eligible for expedited permitting processes.
(This article references related reports by Reuters)