Arkansas Smackover Lithium Play

by Skip Peel - Mineral Consultant

Feb 27, 2024

As the Smackover (SMK) Lithium (Li) play picks up steam we need to acknowledge that from regulatory and legal standpoints, there will be significant differences between the play in South Arkansas and in East Texas.  Very soon we expect to know more about royalty provisions and regulatory guidelines.  From past experience with dissimilarities between Texas and Louisiana mineral laws and regulatory statutes governing the Haynesville Shale, we hope to limit confusion and make it easier to access the information that will be pertinent to land and mineral owners.

In order to help members and quests to the website and to avoid confusion, we will start two new discussions, one for Texas and one for Arkansas.  There is an abundance of information in the original SMK Lithium discussion threads and members may want to click on them and then save them to their computer bookmarks/favorites to be able to access them in the future as they will eventually rotate off the main page.  After 24 hours, comments in those discussions will be closed but the replies will remain available in the website archive.   Archived discussions are available by using the search box in the upper right corner of all website pages.

GoHaynesvilleShale.com was one of the first resources for mineral owners to learn basics, share information and generally provide a place where mineral owners could become more informed managers of their mineral assets in the age of the Internet.  The website is pleased to continue to provide those services to those who will benefit from the SMK Lithium Play.  Please keep in mind two things.  You are a key part of the on the ground intelligence network by letting your friends and neighbors know about GoHaynesvilleShale.com and encouraging them to participate in site discussions.  And since GoHaynesvilleShale.com is free for all to use, please consider a donation to help keep the website online.

https://gohaynesvilleshale.com/donate

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    Sam Goodman

    Exclusive: Chinese lithium company halts tech exports as trade tensions build

    https://www.reuters.com/technology/chinese-lithium-company-halts-te...

    • Jiangsu told customers it would halt exports of lithium processing tech from February 1
    • China announced a proposal for export controls last month
    • Proposal is having a "chilling effect" across industry, lawyer says
    Feb 18 (Reuters) - A Chinese company has stopped exporting a piece of equipment used to process the electric vehicle battery metal lithium, in the clearest sign yet manufacturers are already implementing export controls proposed by Beijing.
    Jiangsu Jiuwu Hi-Tech (300631.SZ) told customers last month it would stop exporting a piece of filtration equipment known as a sorbent from February 1, according to a source with direct knowledge of the matter and documents seen by Reuters.
    China is the world's largest producer of sorbents, used to extract lithium from brines or other solutions containing the battery metal, although its market size can be difficult to ascertain given Beijing's reticence to share data, analysts say.
    The decision by Jiangsu shows Beijing's threat, made public in January, to restrict the export of some battery and lithium technology, including sorbents, is changing behaviour even though the change is for now only a proposal. If approved, companies would need government licenses for overseas sales.
    An executive at another lithium extraction technology company, also speaking on condition of anonymity, said Jiangsu and Sunresin New Materials , another major sorbent producer, are negotiating with the government over the proposal.
    Representatives for Jiangsu and Sunresin did not respond to questions from Reuters. Sunresin's chairman said a month ago the company's overseas expansion plans included transferring technology to customers.
    Beijing has not publicly discussed the proposal since it was released last month.
    Some in the industry consider it is already a deterrent to exporting listed items to unfriendly countries. A China-based international lawyer with clients in the clean energy industry said it was having a "chilling effect".
    Officials with China's Ministry of Commerce have visited several companies to discuss the proposal and in one case, warned against proceeding with a $1 billion export deal that is being negotiated, the lawyer said, speaking on condition of anonymity because of the sensitivity of the issue.
    Banks are also asking for extra approvals before signing off on export finance for items on the list, the person added.
    China's Ministry of Commerce did not respond to questions from Reuters.
    While it is unclear how restrictive the curbs would be if implemented, the proposal alone underscores Beijing's willingness to use its dominance of the mining and processing of lithium and many other critical minerals as leverage in its escalating trade war with Washington.
    China's antimony export ban, announced last December, has already affected the Western auto market, Reuters has reported.
    A spokesperson for Tianqi Lithium Energy Australia, the joint venture between China's Tianqi (002466.SZ) and Australia's IGO (IGO.AX) that controls the world's largest lithium mine and a major lithium refinery, said it was taking advice on Beijing's export proposal and considering its options.

    BUILDING AN ALTERNATIVE SUPPLY CHAIN

    In the near term, any disruption of Chinese sorbent exports may affect plans by Western oil producers to extract lithium from their operations by limiting their technological options.
    Among them, Exxon Mobil (XOM.N) has studied the potential use of Chinese processing equipment at its planned lithium operations, in the U.S. state of Arkansas, two sources familiar with the plans said. Exxon declined to comment.
    Koch Industries, the largest investor in Arkansas lithium developer Standard Lithium (SLI.V), agreed in 2023 to use sorbents from China's Xi'an Lanshen New Material Technology in its North American operations.
    A representative for Koch declined to comment.
    Several Western sorbent producers say they may be able to take market share, although none of them has the market experience of Chinese rivals and their equipment has yet to reach commercial production.
    "We have to completely change the technologies and innovate in production and processing, and we have to do it without being beholden to China, which has a 20-year head start and controls the game," said Brian Menell, CEO of TechMet, which invests in Western mining companies and lithium equipment producers.
    Francis Wedin, chairman of Vulcan Energy Resources (VUL.AX), which has developed its own sorbent technology that it plans to use in Germany, said would-be lithium producers were lining up for help.
    "Over the past few weeks we've gotten inundated by companies wanting to approach us and buy our sorbent and license the technology," he said declining to name the companies but saying they included large lithium companies from North and South America.
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    Feb 20

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      Skip Peel - Mineral Consultant

      Equinor, Standard Seek Offtakers for Arkansas Lithium Project

      Published: Thu, Mar 13, 2025 Author Marc Roussot, Houston Editor Chris Raine  energyintel.com

      Norway's Equinor and Canada's Standard Lithium are looking to sign one or two lithium offtake agreements to secure project financing for their South West Arkansas (SWA) project in the fourth quarter.

       

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      Mar 13

      • up

        Sam Goodman

        10 April 2025

        6A1259703_PFE.pdf

        https://arkleg.state.ar.us/Bills/Detail?id=SB568&ddBienniumSess...

        https://arkleg.state.ar.us/Home/FTPDocument?path=%2FBills%2F2025R%2...

        Arkansas Legislation Delivers Major Boost to Pantera Lithium’s US Strategy

        The passage of SB568 is a major validation of Pantera’s strategic position in the Smackover Formation—one of the most prospective and commercially viable lithium brine basins in North America.

        Key Highlights:

        • Bill SB568 delivers significant fiscal and regulatory incentives for lithium companies in the state of Arkansas1

        • Exempts lithium development activities from sales and use tax, reducing future project costs.

        • Demonstrates strong government support for exploration/extraction and processing and refining industries.

        • Exemption from severance tax for new brine units established after 1 January 2023, will remain in effect until June 30, 2033.

        Pantera Lithium Limited (ASX: PFE) (“Pantera” or the “Company”) is pleased to advise that the Arkansas Senate has introduced Senate Bill 568 (“SB568”), landmark legislation that delivers significant fiscal and regulatory incentives for lithium resource development within the state. The Bill is currently under consideration in the Arkansas Senate and requires both the Senate and the House to approved, followed by Governor Sarah Huckabee-Sanders.

        Pantera Chairman & CEO Barnaby Egerton-Warburton commented:

        “Senate Bill 568 sends a clear signal that Arkansas is open for business when it comes to critical minerals. For Pantera, this legislation de-risks our operational and fiscal outlook and demonstrates strong state-level backing for lithium development. We commend Arkansas lawmakers for recognising the strategic importance of lithium and taking decisive steps to build out a secure domestic supply chain.”

        1. https://arkleg.state.ar.us/Bills/Detail?id=SB568&chamber=Senate...

        Key Provisions of SB568

        • Sales and Use Tax Exemptions for lithium exploration, development, processing, and recycling

        • Modernisation of severance tax laws to incorporate lithium as a critical mineral

        • Alignment with broader U.S. federal initiatives for battery material security and domestic supply chains

        Advantage for Pantera Lithium

        • Pantera’s current and future operations stand to benefit materially from this legislation, which lowers the cost of development and strengthens the economic profile of lithium projects in Arkansas. In particular, SB568:

        • Enhances project economics through CAPEX and OPEX relief

        • Positions Pantera competitively alongside Tier-1 entrants such as ExxonMobil (NYSE: XOM) and Standard Lithium (NYSE: SLI)

        Next Steps for the Pantera Lithium Brine Project

        With a validated geological model and six strategic drilling locations identified, Pantera is poised to commence:

        • Discussions with potential strategic partners.

        • Well surface location negotiations.

        • Finalising all drill permitting approvals.

        • Rig contracting for up to three initial wells.

        • High-impact drilling program to commence.

        This release is authorised by the Board of Directors of Pantera Lithium Limited.

        For further information, please contact: Barnaby Egerton-Warburton Executive Chairman and CEO E: bew@panterali.com P: +61 (0) 437 291 155

        ABOUT PANTERA MINERALS Jane Morgan Investor Relations E: jm@janmorganmanagement.com.au P: +61 (0) 405 555 618

        Pantera Lithium Limited (ASX:PFE) is a forward-looking lithium brine exploration and development company focused on developing high-grade lithium brine resources in the Smackover Formation, Southwest Arkansas. The Company is dedicated to leveraging advanced subsurface modelling and strategic partnerships to establish a leading position in the U.S. lithium supply chain.

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        Apr 10

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