Arkansas Business reports that state regulators gave approval this week to a 2.5% royalty rate for landowners where lithium is extracted from the underground brines.
The decision is considered favorable to Canadian-based Standard Lithium, a firm with an ongoing $1.5 billion project to construct a lithium extraction plant near Lewisville. Standard was joined in the effort by Norway’s Equinor. The two firms anticipate construction to begin late this year or in 2026 with operations beginning in 2028.
Standard pressed regulators to keep the royalty rate low in order to maintain being competitive. The firm also said a high rate might force producers to take their projects to Texas rather than remain in Arkansas. The 2.5% rate was adopted after the Arkansas Oil and Gas Commission earlier in the year rejected a 1.82% proposed rate.
The South Arkansas Minerals Association wanted a 4% rate and said the 2.5% rate, while an improvement, was still insufficient.