Energy firms target Smackover formation for domestic lithium

Major energy and lithium companies are developing the Smackover Formation, a Jurassic-era aquifer spanning several southern U.S. states, in an effort to establish a domestic supply hub for battery-grade lithium. The initiative aims to utilize Direct Lithium Extraction technology to reduce the nation's dependence on foreign imports, particularly from China, as global demand for the mineral is projected to reach 4 million metric tons per year by 2035.

EnergyX, a central participant in the region, has secured nearly 50,000 acres of lithium brine resources. The company’s Project Lonestar in East Texas is designed to produce 12,500 metric tons of lithium annually by 2028, with plans to scale production to 50,000 metric tons by 2030. In March 2026, the firm commissioned a demonstration plant in the area capable of producing 250 metric tons of battery-grade lithium carbonate equivalent per year.

Other industry participants, including Standard Lithium, ExxonMobil, and Chevron, have also established a presence in the Smackover region to pursue large-scale extraction. EnergyX CEO Teague Egan noted that the current industry focus is on proving the commercial viability of extraction technology, stating that the race is underway to determine which firms will be the first to achieve large-scale production.

Legislative efforts are also supporting the development of domestic mineral resources. U.S. senators have introduced the Army Organic Industrial Base Mineral Partnerships Act of 2026, which seeks to facilitate private-public partnerships for mineral extraction on sites such as the Red River Army Depot. The industry is now transitioning from small-scale pilot programs to the development of vertically integrated brine-to-battery ecosystems, contingent on future investments in infrastructure and refining capacity.