Input Stories

A global commodities trader will buy lithium made from salty water in Arkansas (POLITICO Pro’s GREENWIRE, subscription).

What’s going on: “Trafigura on Monday announced it had signed a binding offtake agreement with Smackover Lithium, which plans to produce battery-grade lithium carbonate” from the southern part of the Natural State.

• Smackover, a joint project between Standard Lithium and the Norwegian energy firm Equinor, has 30,000 acres of brine leases in southern Arkansas.
• First production from the project is anticipated in 2028, and a final investment decision is expected later this year.

The details: Under the deal, Trafigura will purchase 8,000 metric tons of lithium carbonate over 10 years, beginning once commercial production starts.

• Smackover intends to produce 22,500 tons of battery-grade lithium carbonate annually and plans to secure offtake agreements from about 80% of the output.
• The Trafigura deal accounts for more than 40% of that volume.

More action in Arkansas: ExxonMobil also applied for and received a royalty rate for lithium extraction in Arkansas last year, through its subsidiary Saltwerx ( Arkansas Advocate).

Why it’s important: “Lithium has become an increasingly sought-after commodity as electric vehicles have become a growing share of the global car market,” notes GREENWIRE.

Our view: “The NAM has long championed investments that secure supply chains of critical materials, and this partnership is a big step toward that goal,” said NAM Senior Director of Energy and Resources Policy Michael Davin. 

• “Policymakers must build on this progress by taking a comprehensive approach that will address the needs of the manufacturing sector across the full critical minerals life cycle.”