"Lithium is becoming an AI story — as artificial intelligence accelerates data center growth, massive new energy storage capacity will be needed, and lithium is at the core of that infrastructure."

⚡️ Smackover Lithium — A Strategic Resource for the AI & Energy Storage Era

🧠 Why Lithium Is Now an AI Story

The rise of AI and machine learning has triggered explosive growth in data centers — and those facilities demand huge amounts of constant and backup power.

As more AI servers come online, energy storage will become essential to keep data flowing even during outages or demand spikes.
Lithium-ion batteries, already dominant in EVs, are now being deployed at scale in AI-enabled data centers, grid storage, and backup power arrays.
This means lithium is no longer just about electric vehicles — it’s about powering the AI economy.

📍 What Is Smackover Lithium?

Smackover Lithium is a large-scale lithium brine project in the U.S. Southeast. It aims to supply high-grade lithium from underground brine reservoirs — ideal for EVs, grid batteries, and AI-driven data center storage.

The project spans southern Arkansas and east Texas, sitting atop the Smackover Formation, a vast underground structure filled with mineral-rich brine.
Unlike hard-rock lithium mining, brine projects like Smackover offer lower surface impact and can be processed with cleaner, faster DLE technology.

📦 How Big Is It?

U.S. Geological Survey estimates the Smackover Formation could host 5+ million metric tons of lithium — one of the largest in North America.
The project has two main zones:
- SWA Project (Southwest Arkansas) — Flagship development site with high lithium concentrations (437 mg/L average)
- East Texas (Franklin Project) — Newly announced resource area with some of the highest lithium-in-brine grades recorded in the U.S. (up to 806 mg/L)

🛠 Who Owns & Operates It?

Company	Role	Ownership
Standard Lithium (SLI)	Operator, technology provider	55%
Equinor ASA (EQNR)	Strategic partner, capital provider	45%

Standard Lithium is a lithium tech company using Direct Lithium Extraction (DLE).
Equinor, a global energy giant (formerly Statoil), is supplying capital and deep expertise in subsurface development.

⚙️ Technology Edge: Direct Lithium Extraction (DLE)

Smackover Lithium uses DLE, a newer process that:

Pulls lithium directly from brine using selective filters.
Eliminates large evaporation ponds.
Returns most water to the ground, reducing environmental footprint.
Achieved >99% lithium recovery in pilot operations.

This makes Smackover more scalable, cost-efficient, and ESG-friendly than older methods.

💵 Recent Big Developments (2025)

💰 1. Over $1 Billion in Project Finance Interest

Smackover Lithium received expressions of interest from major export credit agencies — including U.S. EXIM Bank and Export Finance Norway — and global banks.
These groups are interested in providing over $1.1 billion in senior debt to help fund Phase 1 of the SWA project (total capex ~$1.45B).
The project also received a $225 million U.S. Department of Energy (DOE) grant.

📌 Why this matters: Big, institutional money doesn’t chase hype — it follows viability. This shows Smackover is seen as real, scalable, and strategic.

📈 2. Positive Feasibility Study Completed

In September 2025, Smackover Lithium released a Definitive Feasibility Study (DFS) showing:
- Strong project economics
- 22,500 tonnes per year lithium output (Phase 1)
- Project NPV (net present value): $1.7 billion+

📌 This is a critical step before a final decision to build (expected late 2025).

🌎 3. New Resource Discovery in Texas

East Texas “Franklin Project” was added with a maiden inferred resource.
Contains extremely high lithium grades (up to 806 mg/L) — among the best in North America.
Offers optional scale-up potential beyond Arkansas.

🏭 Location Advantage

Smackover sits close to major U.S. industrial hubs, auto factories, and battery makers.
Can serve EV, grid storage, and data center battery clients with minimal transport costs.
Qualifies for U.S. tax credits, subsidies, and IRA incentives.

📊 Why It’s Interesting for Small Investors

Lithium is now essential for AI infrastructure — not just EVs.
Smackover is:
- One of the most advanced brine lithium projects in the U.S.
- Supported by government funding AND major private capital.
- Environmentally better than many other lithium projects.
This is a real project, not a concept — and it's backed by a Fortune 100 energy partner (Equinor).

⚠️ What to Watch

Final Investment Decision (FID) still pending (target: late 2025)
Lithium price fluctuations could affect economics
Execution risk (construction, permitting, scaling)
Potential for equity dilution if more capital is needed

✅ Bottom Line

Smackover Lithium is shaping up to be a flagship U.S. lithium project, positioned at the intersection of:

EV boom
Grid storage revolution
AI-powered energy demand

Backed by Equinor, a $225M DOE grant, and over $1B in financing interest, this project may soon become a major domestic lithium supplier.

🔋 Lithium isn’t just for EVs anymore — it’s powering the AI era. Smackover might be one of the first North American projects to meet that demand.

Tuesday, December 16, 2025

"lithium is no longer just an EV story. It’s becoming an AI story. A big one"!