Earlier this year, Exxonmobil acquired the rights for a lithium brine reservoir in south Arkansas. Lithium is a key component that is used in electric vehicle batteries.
In an interview with Arkansas PBS’ Arkansas Week, U.S Rep. Bruce Westerman, R- Hot Springs, said the southern region of Arkansas potentially has enough lithium to produce about 15% of the world’s lithium. Westerman said the lithium in south Arkansas could grow the economy in that region.
“Now that lithium is a valuable commodity investors are anxious to be able to extract the lithium to meet even more demand. There’s talks the value of lithium could be more than the value of all the oil and gas produced in South Arkansas,” he said.
According to the International Energy Agency, electric cars make up about 14% of all vehicle sales, with that percentage expected to grow.
Westerman said companies investing in the region will help grow the economy, but there are concerns with the region becoming a hub for lithium extraction.
“This truly is a big issue and great opportunity, but it also comes with challenges because you’re talking about an influx of a lot of capital, which means you’re going to have a lot of construction workers. You’re going to have growth in the area. It’s going to put pressure on everything from water, sewer systems to housing and education and even the hospitals in the area,” Westerman said.
Last week, Arkansas’ U.S Senator Tom Cotton, a Republican, visited the region and met with local officials about needs the region will have as it becomes a hub for lithium extraction, according to the Magnolia Banner-News.
