Magnolia, a small town in Arkansas with a population of only 11,100, is about to become the center of the ‘white gold’ boom in the United States. Known for its history in the oil industry, Magnolia is now transitioning to become a major producer of lithium, also known as ‘white gold’ due to its soft, silvery-white appearance and its role in powering modern technology. Exxon Mobil plans to build a large lithium processing facility near the town that could produce 75,000 to 100,000 metric tons of lithium per year, which would account for 15% of the world’s lithium production.
Located on the Smackover formation, a geological area rich in saltwater brine containing small amounts of lithium, Magnolia’s mayor, Parnell Vann, believes that these projects will bring new opportunities to the town and create thousands of jobs. Currently, Magnolia faces a high unemployment rate of 26.6%. Vann sees potential growth for various businesses in the area, including truck stops, auto body shops, and clothing stores, as the lithium industry expands. The town’s existing grocery store may even need to be supplemented to meet the demand generated by the new jobs.
Exxon Mobil recently acquired 120,000 acres of land in Magnolia and is collaborating with Tetra Technologies to develop over 6,100 acres rich in lithium. Tetra is working with a company called Saltwerx to exploit the lithium and bromine found in 6,138 acres of salty brine deposits in Arkansas. Additionally, Standard Lithium, based in Vancouver, has obtained rights to 30,000 acres of brine leases west of Magnolia.
Though the move from fossil fuels to lithium-powered batteries is seen as a positive step in combating greenhouse gas emissions, it does come with environmental challenges. Extracting one ton of lithium requires a significant amount of water, around 500,000 liters, which can lead to pollution and health issues. Despite these concerns, Vann remains optimistic about the projects but acknowledges that the town’s housing shortage could be a potential obstacle. He plans to address this issue with the city council and hopes to see an additional 5,000 people calling Magnolia home.
The US is slowly shifting towards electric vehicles to reduce emissions, but this transition means relying more on other countries, particularly China, for necessary resources like lithium. Developing domestic sources of lithium would contribute to the nation’s goal of self-reliance. Presently, the US only has one active lithium mine, but numerous companies are working to change that. For example, Lithium Americas has received approval to build the largest lithium mine in North America in Nevada’s Thacker Pass, estimated to produce at least 80,000 tons of lithium annually.
However, the process of extracting lithium can have long-term ecological damage. It requires a substantial amount of water, and the process leaves behind a mixture of salts that can harm the surrounding environment. In China and other parts of the world, lithium extraction has caused pollution, killing fish and contaminating water sources. Similarly, in Chile, lithium operations have left behind mountains of salt and canals filled with polluted water. This raises concerns about the true environmental impact of lithium extraction.
While Magnolia and other areas are poised to benefit from the ‘white gold’ boom, it is crucial to carefully consider the environmental consequences and find sustainable solutions to meet the increasing demand for lithium.
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