While many expect Arkansas to become a major lithium producer in the years to come, exactly what role it will play in the global market has yet to be determined.

To help bring some clarity to that question, a panel of state legislators issued a preliminary approval Tuesday to a contract with a London-based firm that will “provide a comprehensive analysis and strategic roadmap for Arkansas’ role in the global lithium supply chain.”

For years, business and political leaders have spoken about the potential Arkansas’ vast deposits of lithium could bring to the state’s economy, as the mineral is a critical component in electric vehicle, computer and cellphone batteries.

The $90,000 contract the Arkansas Legislative Council’s Review Subcommittee signed off on Tuesday will provide “recommendations for how the state can position itself to become a competitive hub for upstream and midstream segments of the lithium battery industry,” according to a summary provided to legislators.

The contract will head to the full legislative council for a vote Friday.

The one-year contract is with Renaissance Energy Advisors Limited, a London firm founded by experts that had previously provided the state with similar analysis for its burgeoning lithium industry, staff from the Arkansas Department of Commerce told legislators Tuesday.

Fred Lewis, director of strategic initiatives at the Arkansas Economic Development Commission, said the consultants will help the state focus on which kind of companies it should work with, what products it should prioritize, “where the market best plays with our strengths” and what kind of incentives the state should offer to businesses.

“These guys are pretty senior, in nature, have a national scope and contacts … that can help us, I think, build our lithium business in southwest Arkansas,” Lewis said.

State Rep. Jack Ladyman, R-Jonesboro, asked about the “state of the lithium market,” with Lewis replying that the price has more than doubled since last year.

“It’s getting better,” Lewis said. “We still need to break ground in southwest Arkansas.”

The Smackover Formation — a major lithium brine resource — in south Arkansas contains between 5 million to 19 million tons of lithium reserves, which contain enough of the mineral to meet the projected global demand in 2030 for lithium car batteries nine times over, according to United States Geological Survey.

The lithium, found in pockets located 10,000 feet below the surface, is found in brine deposits, which needs to be pumped to the surface in order for the metal to be extracted.

While there are no lithium mines in Arkansas, Standard Lithium said it plans to begin production in 2028 for a project that will create 100 to 125 jobs.

In addition to Standard Lithium, Ablemarle and Saltwerx also have plans for lithium production in Arkansas.

The Arkansas Oil and Gas Commission approved a 2.5% royalty for lithium extraction on property for mineral rights owners, ceasing a yearslong dispute between Standard Lithium and property owners in southwest Arkansas.

Information for this article was contributed by Brett Barrouquere and Lucas Dufalla of the Arkansas Democrat-Gazette.