Smackover Lithium Submits Royalty Application to Arkansas Oil and Gas Commission for South West Arkansas Project

Core Viewpoint - Smackover Lithium, a joint venture between Standard Lithium and Equinor, has applied for a lithium royalty in Arkansas, which is crucial for the success of its South West Arkansas Project [1][3]. Group 1: Royalty Application Details - SWA Lithium LLC has submitted an application to the Arkansas Oil and Gas Commission to establish a lithium royalty for the Reynolds Unit, with a hearing scheduled for May 28, 2025 [1]. - The proposed royalty is set at 2.5% of the total lithium produced, based on the average FastMarkets North American Index Price for technical grade lithium carbonate, which is competitive compared to global projects [2]. - The total proposed royalty compensation, including a brine fee of $65.05 per acre per year, amounts to approximately 3% based on current lithium prices [2]. Group 2: Economic Impact and Project Development - The establishment of a fair royalty is seen as essential for the project's success, providing generous compensation to brine owners and encouraging resource development [3]. - The proposed royalty rate is expected to facilitate capital investment, infrastructure improvements, job creation, and tax revenue, benefiting the Smackover region and Arkansas as a whole [3]. Group 3: Company Background - Standard Lithium is focused on sustainable lithium development, with a portfolio of high-grade lithium-brine properties in the U.S., particularly in Arkansas and Texas [4]. - The company aims for commercial-scale lithium production through a Direct Lithium Extraction process and is advancing the South West Arkansas project in partnership with Equinor [4]. - Equinor is committed to long-term value creation in a low-carbon future, with a diverse portfolio that includes oil, gas, renewables, and low-carbon solutions [6].