Magnolia Mayor Parnell Vann And His Vision for City’s Lithium Future
Welcome to Lithium Link, your resource for insightful news and expert commentary on the latest happenings in the Arkansas lithium scene.
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Magnolia Mayor Parnell Vann says his city has embraced the promise of the lithium extraction industry and the growth that could come from it, and he’s working to bolster the city’s infrastructure to support it.
Vann, who has lived in Magnolia for 59 of his 61 years, tells Lithium Link in an interview that he wants his “friendly, clean town” to be where lithium industry workers and their families live.
“Our goal is to have the families that work in that industry live in Magnolia,” he said. “We know these plants will be west of our city, and we’re only 10-15 miles away.”
The Columbia County seat has a population of about 11,700 people, and the city swells by 4,000 to 5,000 thanks to Southern Arkansas University, a four-year university that offers graduate and undergraduate degrees and whose alumni include country music singer Tracy Lawrence.
To prepare for growth, Vann says the city is planning to spend $40 million on infrastructure improvements. At the top of that list: $10 million to extend water and sewer services to housing subdivisions.
Housing, Vann said, is the No. 1 topic for lithium and lithium-related businesses that inquire about the city.
The Future
It’s unfair to ask someone to predict the future, but Vann is happy to think about what his city might look like in 10-15 years should the lithium extraction industry take hold in Arkansas.
“These plants will be going wide open. I hope that we see a thousand, three thousand jobs after all the construction,” he said.
“I would like to see Magnolia under new streets, extended water-sewer service,” he added. “I would love to see at least two, possibly three subdivisions go up.”
Vann said residential properties are available to accommodate those subdivisions.
“The people that own it just need a reason to do it, and we’re trying to give them that reason with adding infrastructure to their properties so they can start building,” he said.
As for now, Vann said he’s watching to see whether landowners and lithium companies will reach an agreement on royalties for lithium extraction. Until then, he says, other companies are sitting on go, like utility trucks staging for an ice storm.
More: Watch our full interview with Magnolia Mayor Parnell Vann below.
CNBC Visits Arkansas, A ‘Hotbed’ of Lithium Mining
In this video posted recently, CNBC visits Magnolia and El Dorado, calling Arkansas a “hotbed” of lithium mining:
The future of lithium production in the U.S. is gaining momentum in Arkansas, as companies like ExxonMobil, Albemarle, and Standard Lithium make significant investments in the state.
This comes at a time when global demand for lithium, driven by electric vehicles and energy-storage needs, continues to grow. In 2023, global lithium consumption reached 180,000 metric tons, up from 142,000 metric tons in 2022, according to the United States Geological Survey. But the U.S. produces less than 1% of the world’s supply. …
While most of the world’s lithium still comes from countries like Australia, Chile and China, Arkansas could change that. The state is home to the Smackover Formation, a geological formation rich in lithium brine.
“Lithium resource quality is really what makes this a great region,” said Wesley Hamilton, CTO and vice president of research and technology at Albemarle, the world’s top lithium producer. “It comes down to two things: the concentration of lithium and the ability to extract it efficiently from the brine.”
Video: You can read CNBC’s report, which includes interviews with Robert Mintak of Standard Lithium, and watch the complete video here.
Parting Shots
It’s been a busy few weeks for lithium news in Arkansas. Here’s a sample of what we’re reading/listening to:
Judge grants companies’ request to delay Arkansas commission hearing on lithium royalties (Arkansas Democrat-Gazette) — An administrative law judge granted a request to delay an Arkansas Oil & Gas Commission hearing to determine a royalty rate for mining lithium. The move came after the South Arkansas Minerals Association filed a formal objection earlier this month to the lithium royalties application submitted by five of Arkansas’ prospective lithium producers, “arguing that a decision in favor of the royalty applicants would be ‘unlawful rulemaking. A new date for the hearing has not been set. Jesse Edmondson, the government relations director for Standard Lithium, one of the five companies that filed the royalty application, has said the company believes "that the application we have filed meets statute requirements, and presents a fair and equitable royalty for all parties."
Billion-dollar Southwest Arkansas commercial lithium project to receive federal funding (KATV-TV, Channel 7) — The U.S. Department of Energy is in talks with Standard Lithium Ltd. and its partner, Equinor, to provide up to $225 million in funding for the first phase of companies’ South Arkansas lithium mining project. DOE’s interest in the project? National security, by way of ensuring more domestic lithium production.
The lithium boom: What’s holding back a lithium rush in the U.S.? (“On Point,” WBUR Boston) — As part of its “Elements of Energy” series that originally aired in March, “On Point” devotes an episode to the growing demand for lithium and the significant environmental and social challenges that lithium mining faces in places like Nevada and North Carolina.
Stanford breakthrough promises 50% cheaper, cleaner lithium extraction (New Atlas) — A look at a new lithium extraction technique called redox-couple electrodialysis (RCE). Developed by Stanford University, the method is reportedly 50% cheaper, more energy-efficient and environmentally friendly compared to traditional methods. It also claims near 100% efficiency in extracting lithium from brine.
