Demands Stemming From USMCA Forcing New Focus on Boosting Critical Metals Production - Seite 2

With the USMCA, in order for automakers to qualify for zero tariffs, 75% of auto components must be manufactured within the trade bloc (up from NAFTA's previous 62.5% mark). The result may be a need to import or produce even more critical metals such as lithium to meet these new requirements.

Alarmingly, the lithium market as a whole is expected to struggle to meet demand through 2025, thanks to growing production EVs from US manufacturers such as Tesla Motors. Innovative domestic lithium production, such as projects like Standard Lithium's (TSX.V:SLL) (OTC:STLHF) South Arkansas Lithium Brine Project could become ever more valued to the USMCA partnership.

The Trump administration has already indicated it wants to help however it can to identify new domestic sources of critical minerals. The government plans to help increase domestic exploration, mining and recycling by giving miners and producers electronic access to better mapping and geological data, and streamlining leasing and permitting for new mines.

But in the case of Standard Lithium's South Arkansas Lithium Brine Project might be just the type of innovation that the US and its partners need. The project utilizes a novel approach to unlocking ample supplies of lithium from brine already being produced and processed in commercial volumes for the recovery of other minerals primarily bromine.

Standard Lithium has developed a proprietary process that uses a solid ceramic adsorbent material with a crystal lattice that is capable of selectively pulling Li + ions from the "tail brine" or waste brine after it has gone through the bromine-extraction step at LANXESS three operating facilities in South Arkansas.

Bringing Out the Value of Brine

Standard Lithium is steadily building out a proposed lithium extraction pilot plant to be located in Eldorado, Arkansas, designed to process brine from various brine streams. Among those streams is one of the world's largest brine deposits, the Smackover Limestone Formation, of which the project is strategically located within.

The company recently announced a joint venture with partners LANXESS Corporation, a global specialty chemical company, in South Arkansas to develop commercial opportunities related to the production, marketing and sale of battery grade lithium products extracted from brine produced from the Smackover Limestone Formation. Upon proof of concept, Standard Lithium will provide existing rights and leases held in the Smackover Limestone Formation, and the pilot plant being developed on the property-in addition to its proprietary extraction processes including all relevant intellectual property rights.