Standard Lithium Ltd. and its joint venture partner Equinor are taking a significant step forward with their South West Arkansas Project by submitting an application to the Arkansas Oil and Gas Commission for a comprehensive lithium royalty framework. This framework proposes a 2.5% gross royalty on lithium output, based on North American index pricing, and includes additional annual brine fees that could increase total compensation to around 3%. The details of this proposal will be reviewed at a formal hearing set for May 28, 2025, in Magnolia, Arkansas.
This initiative is part of the broader Smackover Formation project, which aims to develop sustainable lithium production capabilities. The joint venture's efforts to establish a structured approach to compensating landowners are seen as a strategic move to foster regional economic development while ensuring fair compensation for stakeholders. Standard Lithium, a near-commercial lithium development company, focuses on high-grade lithium-brine properties in the United States, prioritizing projects with strong infrastructure, skilled labor, and efficient permitting processes.
The proposed royalty framework could serve as a model for future lithium extraction projects in the region, underscoring the critical role of lithium in the renewable energy and advanced technology sectors. By creating a transparent and equitable compensation model, Standard Lithium and Equinor are working towards a mutually beneficial arrangement for all parties involved in the burgeoning lithium economy. For more information on the project, visit https://www.standardlithium.com.
