Lithium is central to the world’s shift to renewable energy. As the core component of most non-stationary battery technologies, it is a critical part of global supply chains and underpins economic growth.
Like most markets, the United States is keen to develop a domestic lithium capability and supply, with lithium included on its 50 critical minerals. The country certainly has some advantages: it hosts some of the world’s largest lithium resources, and many known reserves are in established resource hubs - such as Arkansas - where significant infrastructure already exists.
Evaporating value
Despite ranking among the top countries in lithium resources, the United States currently produces just 1% of global supply. The primary reason is geology: its largest deposits – those in the Smackover Formation that runs from Texas to Alabama – are brine deposits. To date, extracting lithium from brine deposits has not proven economical in much of the continental US.
Climate is a major challenge. Traditional lithium extraction relies on pumping lithium-rich brine through a series of evaporation ponds to progressively increase the lithium concentration by evaporation and precipitation of the salt. The process depends on conditions that favor high evaporation rates, such as strong solar radiation, wind, clear skies, and minimal precipitation. It also consumes vast amounts of land and water – around 500 cubic meters of water are evaporated or consumed to produce one ton of lithium carbonate equivalent (LCE) from brine. The only operating US lithium mine using evaporation ponds is located in Nevada.
The traditional process is also slow and rather inefficient. It takes 9 months to 2 years, depending on the lithium concentration and environmental condition, to evaporate the brine to a usable grade, and, even then, recoveries rarely exceed 50%. High concentrations of lithium in the brine are needed for economics to make sense. In Chile’s Atacama region - the global center of brine-based lithium production – concentrations can reach 1,500 – 1,900 mg/L making it viable there.
In contrast, the Smackover Formation typically sees concentrations around 500 mg/L (with 800 mg/L at the high end). While that makes it the richest brine resource in North America - Canada’s best deposits are below 100 mg/L - it is still less concentrated than Atacama and lacks the climate required for large-scale evaporation ponds.
From resources to reserves
In the past few years, a new technology has emerged that promises to solve many of these challenges, making lithium production economical and sustainable in the continental US.
Direct Lithium Extraction (DLE) is an engineered process to concentrate and extract lithium directly from brine. It can operate virtually anywhere where brine resources are found and requires only a modest surface footprint.
DLE is much more sustainable. Because it does not rely on evaporation and returns treated brine underground, it consumes minimal net water across the process from brine extraction to final lithium carbonate product. It is also significantly more efficient. DLE extracts lithium in a matter of hours and achieves recoveries above 95%, making 500 mg/L brines economically attractive.
Smackover Lithium pioneers the DLE process
In 2028, Smackover Lithium – a joint venture between Standard Lithium and Equinor – is scheduled to begin production of battery-quality lithium carbonate at its South West Arkansas DLE project. It will be the first commercial-scale DLE project developed in the Americas.
The project is receiving strong governmental and investor support. In January 2025, the US Department of Energy granted US$225 million to support the construction of the initial phase of the project. In April 2025, it was selected as one of the first critical mineral production projects to advance under Executive Order 14241, Immediate Measures to Increase American Mineral Production. Investors have also been drawn to the project, with the company completing a $130 million raise on the NYSE and TSXV exchanges in October, which along with key regulatory approvals, move the South West Arkansas project closer to a final investment decision.
In addition, Smackover Lithium published a maiden inferred resource report for a related East Texas Smackover project in November supporting the growth potential for future DLE developments in the US.
Designing an original
Ausenco has helped bring this first-of-its-kind project to reality. Working with Smackover Lithium and their technology provider Koch Technology Solutions (now Aquatech), we executed a Front End Engineering Design (FEED) to develop a Central Processing Facility (CPF) integrated with DLE for Smackover Lithium with capacity for 22,500 tonnes of battery-quality lithium carbonate per year over a 20-year lifespan.
Drawing on our deep experience with lithium brine operations and recognized expertise in compact processing plant design, we served as the project’s engineering services provider, completing both the definitive feasibility study and front-end engineering design.
We also assisted in proving the technology, assessing capital costs, sequencing the investment plan and evaluating project economics. The definitive feasibility study indicates a pre-tax internal rate of return (IRR) of over 20%, illustrating the efficiency of the DLE technology and the processing facility.
Living our promise
In many ways, the Smackover Lithium project reflects Ausenco’s commitment to innovation and smarter solutions. Our work has helped the US in strengthening its lithium supply chain, enabled Smackover Lithium to deploy new technology, reduced environmental impact, and helped investors achieve returns on their capital.
For the multi-disciplinary team behind the project, the experience was deeply personal. Designing a first-of-its-kind lithium DLE plant offered us a unique opportunity to explore a range of options, ideas and technologies to help our client reach their objectives. That opportunity inspired us to continually push ourselves—drawing on our skills, curiosity and collaboration to deliver the best possible outcome for our client.
Unlocking the future
As one of the few engineering firms in North America with hands-on experience designing a commercial-scale DLE facility, we are keen to share our insight and knowledge with others in the sector. By helping advance the next generation of lithium projects, we aim to support a stronger, more sustainable supply chain for the energy transition.