SMACKOVER LITHIUM GROUP – TEXAS
Lithium from brine is an evolving energy play based on Direct Lithium Extraction (DLE). The DLE process for extracting lithium and other elements with value from Smackover (SMK) formation water is becoming the most economic and environmentally friendly means of sourcing domestic lithium for use in modern battery technologies. Leasing is ongoing and extraction plants are in the design/development stage. Different states will have somewhat different regulatory and legal frameworks.
Note that lithium concentrations in the Smackover section can be highly variable plus reservoir quality for an effective water source can be equally inconsistent. As a result, not all areas may be prospective for lithium mining (DLE). One also needs to keep in mind that variable H2S concentrations are a normal product associated with the Smackover reservoir and any produced fluids.
The counties in Texas that are prospective for Smackover lithium production are Cass, Morris, Titus, Franklin, Hopkins, Hunt, Camp, Marion, Rains, Navarro, Wood, Van Zandt, Kaufman, Limestone and Upshur Counties.
Skip Peel - Mineral Consultant
Lisa, my thought is to not get carried away with the company making lease offers. As with O&G leases, the chances are great that a lease will get traded, assigned or sold to an eventual operator. And you have no guarantee what company that might be. The focus should be on the lease terms because regardless of what company ends up with the lease, they will have to honor the terms. You have control over the lease terms you choose to settle for but no control over the company that ultimately ends up with your lease. Get professional help in crafting the lease terms and let everything else turn out as it will.
As lithium companies are projecting full production timelines, the greatest concern for me would be the emergence of a superior battery technology that greatly reduces demand for lithium. Sodium-ion battery technology is generating tremendous investment and experiencing technological advancements. Sodium-ion batteries look poised to replace lithium in EV batteries by the end of this decade. The technology is already displacing lithium for grid back up applications. The local media seem to have completely missed this on rushing train that could derail all the rosy projections about lithium-ion battery demand. I suggest that you do a little online research. You might start with CATL.
Feb 1
Lisa
The better lease offer is from the less-known and private company. They intend to go for it— and make a case that they can get it done less encumbered by size and be producing fast. They’ve already drilled a well. I’ve been onsite.
I just feel too uninformed to make a decision— but I’m ready to be done thinking about all this!
Feb 1