At its Tuesday night meeting, the Sulphur Springs City Council approved a brine lease for mineral rights at the “Thermo Mine” property, which is owned by the City of Sulphur Springs. This approval marks a significant step in the city's efforts to tap into lithium resources located within the Smackover Formation, a geological formation that traverses northeast Texas and is known for its high lithium concentrations.
The council authorized the city manager to finalize a lease agreement with Texas Lone Star Brine, LLC. This company plans to employ Standard Lithium, LTD's Direct Lithium Extraction (DLE) technology to extract lithium from the brine. The DLE process involves processing brine in small tanks to extract lithium, after which the remaining brine water is reinjected into the formation, minimizing environmental disruption.
City Councilman Jay W. Julian, who shared the news on Facebook, highlighted the significance of the lease and the advanced technology being used. Julian visited Standard Lithium’s DLE facility in El Dorado, Arkansas, to assess their operations. He reported that the process was efficient and environmentally friendly, and expressed confidence in the technology, which has attracted substantial investment, including a $100 million contribution from Koch Strategic Platforms.
Julian noted that several companies, such as Black Mountain Lithium and Bright Star Exploration, LLC, are competing for mineral rights to brine in the region. A potential fourth competitor might soon enter the market. While he refrained from advising others on their lease decisions, Julian emphasized that the city's choice of Texas Lone Star Brine, LLC was based on thorough due diligence and the belief that Standard Lithium’s technology and investment backing position them well for successful lithium extraction.