Smackover Lithium secures AOGC integration approval, advancing South West Arkansas Project with lithium production slated for 2028.
Smackover Lithium, a joint venture held 55% by Standard Lithium Ltd. and 45% by Equinor, has received unanimous approval from the Arkansas Oil and Gas Commission (AOGC) for its Integration Application concerning the Reynolds Brine Unit. This unit is the planned site for the initial commercial phase of the joint venture’s flagship South West Arkansas Project (the “SWA Project” or “Project”). Integration represents a vital regulatory process that consolidates non-leased mineral interests into an officially approved brine production unit. This ensures the operator has lawful access to the brine resources while simultaneously safeguarding the correlative rights of all mineral owners in the area.
The final integration approval from the AOGC marks a crucial de-risking milestone, providing much-needed certainty regarding the resource base that underpins the Project. The Reynolds brine production area, which spans an extensive 20,854 acres, had previously been unitized with unanimous approval by the AOGC on April 24th. Following this, a 2.5% lithium royalty was unanimously approved on May 29th, representing a historic first for lithium derived from brine in the state of Arkansas.
The South West Arkansas Project is structured to produce battery-quality lithium carbonate, with initial annual production capacity targeted at 22,500 tonnes. Operations are slated to commence in 2028, pending final investment decisions and the completion of development activities. According to Dr. Andy Robinson, President and COO of Standard Lithium, the regulatory approval for integration is a significant step forward. He emphasized the importance of the milestone, noting that it allows the team to continue advancing towards the Final Investment Decision for the SWA Project as efficiently as possible.
Allison Kennedy Thurmond, Vice President for US Lithium at Equinor, highlighted the broader economic implications of these approvals. She stated that Arkansas is committed to promoting economic growth through regulatory certainty, and that the unanimous decisions from the AOGC regarding unitization, royalty, and integration applications instill confidence in the future of the SWA Project. The approvals collectively reflect the state’s support for lithium development while reinforcing investor certainty and operational feasibility for the joint venture.
The SWA Project is positioned as a strategically important initiative for lithium supply in the United States, combining high-quality resource potential with robust regulatory backing. With the integration approval now secured, Smackover Lithium is well-placed to progress its development schedule and attract further investment to realize the Project’s commercial ambitions. The joint venture continues to engage with stakeholders, regulators, and partners to ensure a smooth path toward initial production, supporting both the regional economy and the broader battery materials market.
