"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.
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As more AI servers come online, energy storage will become essential to keep data flowing even during outages or demand spikes.
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Lithium-ion batteries, already dominant in EVs, are now being deployed at scale in AI-enabled data centers, grid storage, and backup power arrays.
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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.
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The project spans southern Arkansas and east Texas, sitting atop the Smackover Formation, a vast underground structure filled with mineral-rich brine.
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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?
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U.S. Geological Survey estimates the Smackover Formation could host 5+ million metric tons of lithium — one of the largest in North America.
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The project has two main zones:
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SWA Project (Southwest Arkansas) — Flagship development site with high lithium concentrations (437 mg/L average)
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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)
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🛠 Who Owns & Operates It?
| Company | Role | Ownership |
|---|---|---|
| Standard Lithium (SLI) | Operator, technology provider | 55% |
| Equinor ASA (EQNR) | Strategic partner, capital provider | 45% |
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Standard Lithium is a lithium tech company using Direct Lithium Extraction (DLE).
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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:
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Pulls lithium directly from brine using selective filters.
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Eliminates large evaporation ponds.
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Returns most water to the ground, reducing environmental footprint.
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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
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Smackover Lithium received expressions of interest from major export credit agencies — including U.S. EXIM Bank and Export Finance Norway — and global banks.
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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).
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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
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In September 2025, Smackover Lithium released a Definitive Feasibility Study (DFS) showing:
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Strong project economics
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22,500 tonnes per year lithium output (Phase 1)
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Project NPV (net present value): $1.7 billion+
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📌 This is a critical step before a final decision to build (expected late 2025).
🌎 3. New Resource Discovery in Texas
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East Texas “Franklin Project” was added with a maiden inferred resource.
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Contains extremely high lithium grades (up to 806 mg/L) — among the best in North America.
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Offers optional scale-up potential beyond Arkansas.
🏭 Location Advantage
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Smackover sits close to major U.S. industrial hubs, auto factories, and battery makers.
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Can serve EV, grid storage, and data center battery clients with minimal transport costs.
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Qualifies for U.S. tax credits, subsidies, and IRA incentives.
📊 Why It’s Interesting for Small Investors
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Lithium is now essential for AI infrastructure — not just EVs.
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Smackover is:
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One of the most advanced brine lithium projects in the U.S.
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Supported by government funding AND major private capital.
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Environmentally better than many other lithium projects.
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This is a real project, not a concept — and it's backed by a Fortune 100 energy partner (Equinor).
⚠️ What to Watch
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Final Investment Decision (FID) still pending (target: late 2025)
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Lithium price fluctuations could affect economics
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Execution risk (construction, permitting, scaling)
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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:
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EV boom
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Grid storage revolution
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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.
