LEWISVILLE, Ark. — In southwest Arkansas, in towns like Lewisville, Magnolia, and El Dorado—majority-Black and rural communities—residents see the economic potential of a lithium boom in the region. However, they remain cautious of a new industry, birthed from legacy oil and gas companies, that aims to help the U.S. transition away from fossil fuels.
This fall, the U.S. Geological Survey found lithium in bromine-rich brines located 10,000 feet below the surface. According to the survey, there could be 5 to 19 million tons of lithium in the Smackover Formation––enough to meet the projected 2030 world demand for lithium in car batteries nine times over.
Hayman believes this could be a significant step towards a cleaner energy future and making the U.S. a key player in producing critical minerals for electric vehicles. “If we’re in a world where we want to domestically produce lower CO2-intensive energy and storage of energy, like batteries, we have to have the resources to do it.” he said.
Environmental journalist Phillip Powell for the Arkansas Times is keeping an eye on the community’s concerns for the environment, greenwashing and how a shifting administration could change environmental regulations for the lithium industry.
Why Arkansas?
These towns sit atop the Smackover Formation, a limestone aquifer that spans from northeast Texas to Florida’s Gulf Coast. A layer of brine rich in minerals sits beneath this freshwater, 10,000 feet beneath the Earth’s surface. Once abundant in oil and natural gas, the formation has been a hub for bromine extraction since the 1950s.
Powell told The Black Wall Street Times that the existing infrastructure and expertise for bromine extraction makes southwestern Arkansas a suitable location for the lithium industry. Oil and gas companies are first on the scene.
“Exxon Mobil is in South Arkansas. They operate as Saltwerx. Then you have a Canadian company called Standard Lithium, and then you have a multinational energy company called Albemarle,” he said. “These companies formed Tetra Technologies and Lanxess Corporation.”
Lanxess Corporation has been operating in Arkansas since the 1950s. The company plans to extract lithium out of the brine instead of bromine, but taking lithium out of the brine will require a different set of skills and advanced training.
Projected economic benefits
Lithium extraction promises high-paying jobs, with some positions offering salaries up to $92,000 a year. Arkansas Governor Sarah Huckabee Sanders projects the state could become the nation’s leading lithium producer, contributing 15% of the world’s lithium needs.
Exxon Mobil told Grist in September it has established a $100,000 endowment for community grants and partnered with local organizations to improve education and quality of life. Companies have opened liaison offices and held public meetings to address community concerns and establish goodwill.
Parallels to past exploitations
Majority-Black towns like Lewisville fear they may not reap the same benefits as wealthier, majority-white areas, reflecting patterns from the region’s oil boom.
Residents told Grist about the historical inequities they faced when oil and natural gas were abundant. Black workers held lower-paying jobs than their white counterparts and their communities were left with environmental degradation.
“Local leaders are excited about the economic potential but are also cautious,” Powell said. “They’ve seen companies come in, make big promises, and leave without delivering much of what was expected.”
He told The Black Wall Street Times many residents remember how the oil boom enriched some while leaving others—especially Black communities—behind. There’s a fear that history could repeat itself.
“Even if companies promise to hire locally, many of the jobs require advanced degrees or training that residents don’t have access to because of decades of disinvestment in schools,” Powell added.
There’s a worry that high-paying jobs will go to out-of-state contractors who have the training instead of benefiting the communities where the extraction is happening.
Environmental risks
While Direct Lithium Extraction (DLE) is less invasive than traditional mining methods, it still carries risks. DLE is less water-intensive than extracting lithium from ore and uses a “closed-loop” system to reduce environmental impact.
However, the technology is new and unproven at scale, leaving questions about long-term viability and safety. And the need for an extensive network of pipelines increases the risk of leaks.
“There’s a fine line between greenwashing and genuine community engagement,” Powell said. “Are these companies really prioritizing climate justice, or are they just trying to avoid opposition while knowing the work could be more destructive than they let on?”
Lithium extraction, even with more sustainable methods like DLE, raises concerns about water use, contamination and waste management. Brine spills from pipelines and waste products could echo the environmental damage caused by past oil and gas operations.
“If saltwater brine spills onto farmland, it could do serious damage. While it wouldn’t be as catastrophic as an oil spill, it’s still a significant environmental concern,” Powell said.
Royalties, mineral rights and landowner tensions:
Lithium companies face legal challenges over royalty rates with landowners demanding higher payouts given the potential scale of the lithium boom. The Arkansas Oil and Gas Commission rejected an initial application for lower royalties, delaying commercial production.
“There’s an ongoing regulatory battle over royalty rates,” Powell said. “Fossil fuel companies pay significant royalties—landowners typically get 16.67% of profits from oil extraction.”
However, lithium companies are pushing for much lower rates, arguing that the extraction and processing are expensive. Powell said the companies are arguing they need lower royalties to remain globally competitive, especially since they’re already investing heavily in infrastructure and relying on federal grants.
Other big issues stem from mineral rights and land ownership. The lithium companies don’t own the land—they lease it from landowners, many of whom have held mineral rights for generations. This creates tension because the landowners want fair compensation for the natural resources beneath their property.
“The mineral rights in South Arkansas are often tied to old-money families and corporations, like timber and oil companies, who are very invested in maximizing their share of the profits,” Powell said.
Black families in the region fear losing generational land due to unclear ownership or pressure from speculators, similar to practices during the oil boom.
“One concern is about heirs’ property—land passed down informally in Black families without clear titles or deeds,” Powell said. The community is concerned speculators could exploit this and pressure families to sell their land below market value.
Lithium’s uncertain future in Arkansas
While Lithium extraction in Arkansas could help the U.S. reduce reliance on fossil fuels and a foreign supply chain for electric vehicles, the mining process also raises uncertainties for Black communities in towns like Lewisville and Magnolia. These rural communities, already shaped by past rushes of bromine and oil and gas that left environmental scars and economic disparities, now face questions about whether this new industry will deliver on its promises or perpetuate cycles of exploitation.
As the renewable energy transition hinges on federal policies like the Inflation Reduction Act, the shifting political landscape casts doubt on whether these projects will receive the consistent funding and oversight necessary to ensure safety and sustainability. Without robust federal backing and stringent environmental protections, the risks of underregulated industries threaten to deepen community harm.
For majority-Black towns in Arkansas, the stakes are deeply personal. The lessons of the past—broken promises, inequitable economic gains, and lasting environmental damage to land—serve as a stark reminder of what’s at risk. The success of lithium production in the state will depend on whether communities on the frontlines are genuinely included in decisions, ensuring progress does not come at the cost of justice. The question remains: Will Arkansas lead a just transition, or will history repeat itself?
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I have a house in one of these small towns and It’s good to see someone not just buying the same old talk on brining jobs and economic booms to community where they have just blown a lot of flowery smoke up everyone’s rear. These exact companies have a very bad track record of coming in extracting the riches and leaving a wake of environmental damage. This area they want to set-up drilling operations is right near the lakes that have all sorts of protected species. Yeah maybe the trickle down effect of job’s in the lower sector may materialize, after all the rich folks need all the other support businesses. I would love to get involved as an environmental watchdog to make them keep their lofty promises.