What happened
Most lithium stocks are in the green today, but Standard Lithium (SLI 6.96%) is absolutely crushing it: It was up 15.6% as of 11:30 a.m. EDT.
You might want to thank Jim Cramer.
So what
In an interview with CNBC's Jim Cramer on his Mad Money episode Wednesday, Standard Lithium's CEO Robert Mintak highlighted how significant Arkansas is for the global lithium and electric vehicle industry.
Mintak revealed Standard Lithium's plans to target the U.S. EV industry, explaining how geographically well positioned south Arkansas is to not just serve the U.S. EV market but also to facilitate exports to Europe thanks to its proximity to the Gulf Coast.
Image source: Getty Images.
Standard Lithium's flagship 150,000-acre Lanxess project is located in the Smackover brine region of south Arkansas and comprises three brine production plants. Instead of getting into the arduous process of mining lithium Standard Lithium uses a direct lithium extraction process to extract lithium from saltwater brine. Mintak said the company intends to replicate its lithium extraction technology across south Arkansas to produce battery-grade lithium.
Although the majority of the world's lithium can be found in continental and geothermal brine deposits, oilfields also contain rich lithium resources. In the U.S., the Smackover Formation is known to have the richest lithium resources, and Standard Lithium is the first company to develop a lithium project in the region.
Construction of the company's plants is on track, and Standard Lithium has already signed on its first customer: Germany-based chemical giant Lanxess, which is also a key partner. Standard Lithium, in fact, has managed to bypass most of the hurdles to commercial production by partnering with Lanxess and Tetra Technologies to develop its flagship project. Both partners already have the expertise and infrastructure to extract brine from the ground.
Now what
Of course, you wouldn't want to bet on a stock based on one interview, but Standard Lithium has a promising technology at hand that looks commercially viable and could potentially single-handedly place the U.S. on the brine-lithium global map if successful. Also, Mintak has rich experience in the industry. Before joining Standard Lithium, Mintak co-founded Canada-based Pure Energy Minerals, which has a lithium-brine project in Nevada, and oversaw the lithium extraction process at the company.
With interest in electric vehicles booming all over the world, investor enthusiasm in Standard Lithium shares could remain high.
