Trafigura has signed a long-term offtake agreement to purchase lithium carbonate from the South West Arkansas (SWA) Project. Smackover Lithium is a joint venture between Standard Lithium Ltd. and Equinor ASA.

Trafigura Secures Long-Term Lithium Supply

Trafigura will purchase 8,000 metric tonnes of battery-grade lithium carbonate each year from the SWA Project. The agreement runs for ten years, bringing the total contracted supply to about 80,000 tonnes.

The contract follows a take-or-pay structure. This means Trafigura must purchase the agreed volume every year or pay for it regardless. Agreements like this are common in mining and energy because they provide financial certainty for new projects.

Deliveries will begin once the project enters commercial production. The partners expect production to start in 2028, while the final investment decision is planned for 2026. Notably, for developers, long-term supply contracts often play a key role. They signal market confidence and make it easier to secure project financing.

Unlocking The South West Arkansas Lithium Project

The SWA Project sits in southern Arkansas near the borders of Texas and Louisiana. It lies within the Smackover Formation, a geological region known for lithium-rich brine deposits.

• Smackover Lithium operates the project as a joint venture. Standard Lithium owns 55%, while Equinor holds 45%, and Standard Lithium serves as the operator.

The project covers roughly 30,000 acres of brine leases. The first phase of development focuses on the Reynolds Brine Unit, which spans more than 20,800 acres. Regulators approved the unit without objections from local stakeholders. And this approval marked an important milestone for the project’s development.

The first stage of the project aims to produce about 22,500 tonnes of battery-grade lithium carbonate each year. Nearby leases offer additional space for future expansion if production increases.

Direct Lithium Extraction at the Core

The project will rely on direct lithium extraction (DLE) technology to recover lithium from underground brine.

Traditional lithium operations often use evaporation ponds that take months or even years to produce lithium chemicals. In contrast, DLE removes lithium directly from brine using specialized materials and chemical processes.

After extraction, the remaining brine is usually pumped back underground. This process helps maintain reservoir pressure and reduces surface water use.

Because of these advantages, DLE has attracted strong attention across the lithium industry. It can shorten production times and reduce the land footprint of operations. The company has spent several years testing and refining this technology. The SWA Project aims to apply it on a commercial scale.

Smackover Formation: A Rising Center for U.S. Lithium Production

The Smackover Formation stretches from central Texas to the Florida Panhandle. It is widely considered one of the most promising lithium brine regions in North America. Lithium concentrations in the formation are comparable to those found in major production areas in Argentina and Chile.

Arkansas sits at the center of this resource. The region already has a long industrial history. Oil and gas production began there in the early twentieth century. Later, the region became a key hub for bromine extraction from brine.

This industrial background created several advantages for lithium development. Infrastructure such as wells, pipelines, and processing facilities already exists. In addition, the local workforce has decades of experience handling brine extraction.

Because of this foundation, lithium production can build on existing systems rather than starting from scratch. Furthermore, the region also faces fewer water stress challenges than some lithium-rich areas in South America or the western United States. This improves the long-term feasibility of brine-based lithium projects.

Strong Resources Support the Project

The company revealed that resource estimates suggest the SWA Project holds significant lithium potential. Current studies project about 447,000 tonnes of proven lithium carbonate equivalent reserves.

This represents roughly 38 percent of the project’s measured and indicated resource base, which totals about 1.17 million tonnes of lithium carbonate equivalent.

The operation will begin production with lithium concentrations of around 549 milligrams per liter in the brine. Over its estimated 20-year operating life, the project is expected to process about 0.20 cubic kilometers of brine. The average lithium concentration during that period is expected to remain around 481 milligrams per liter.

Higher lithium grades play a major role in project economics. Strong concentrations allow producers to recover more lithium from each unit of brine. As a result, processing costs fall, and efficiency improves.

Because of this, projects with both strong grades and large resources tend to attract greater interest from investors and long-term buyers.

• READ MORE: The U.S. EV Supply Chain Race: Where Surge Battery Metals Fits in the National Critical Minerals Strategy

U.S. Lithium Potential in a Global Context

Lithium resources in the United States come from several geological sources.

• According to the latest data from the U.S. Geological Survey, measured and indicated lithium resources in the country are estimated at around 30 million tons.

These resources occur in different types of deposits, including continental brines, oilfield brines, geothermal brines, claystone deposits, hectorite, and hard-rock pegmatites.

Global exploration continues to expand the lithium resource base. And worldwide, measured and indicated lithium resources are estimated at 150 million tons. As exploration advances and new extraction technologies emerge, more regions are becoming viable sources of lithium supply.

Rising Demand from EVs, Energy Storage, and AI

Lithium demand continues to increase across several sectors. The largest driver remains the electric vehicle market.

In the United States, lithium demand for EV batteries is expected to grow by about 25% per year over the next decade. This growth rate exceeds the projected global EV demand growth of about 13 percent annually.

Energy storage is another rapidly expanding market. Large battery systems help store electricity from renewable sources such as solar and wind power and release it when demand rises.

At the same time, digital infrastructure is creating new pressure on electricity systems. Data centers that support artificial intelligence require massive amounts of energy. This trend is pushing utilities to expand battery storage capacity.

Because of these factors, the U.S. energy storage market could grow by roughly 29 percent per year, further increasing the need for lithium-based batteries.

A Practical Shift in the U.S. Lithium Story

For many years, the United States relied heavily on imported lithium materials. However, that approach is slowly changing.

Projects like the SWA development show how companies are trying to rebuild parts of the battery supply chain domestically. Instead of shipping raw materials across several continents, producers are exploring ways to supply lithium closer to battery and vehicle manufacturing centers.

The Smackover region fits naturally into this transition. Its geology, infrastructure, and long history of brine extraction already support industrial operations.

The agreement with Trafigura adds another layer of confidence. Commodity traders usually commit to long-term supply deals only when they believe a project has strong potential.

If development moves forward as planned, the SWA Project could turn southern Arkansas into a new center for lithium production. Over time, the region may shift from its long history of oil, gas, and bromine toward a growing role in supplying the battery metals needed for modern energy systems.

• READ MORE: U.S. Lithium Push: How Washington’s Bet on Lithium Americas Could Reshape the Global Market

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At Green Earth Group N.V. (Euronext Amsterdam: EARTH, ISIN: NL0009169515), we are committed to engineering possibilities for a greener planet with a mission to make regeneration scalable and investable for people and the planet. We are a leading end-to-end developer of high-quality, large-scale nature-based solutions that restore ecosystems and improve livelihoods.

Aerospace giant Boeing has signed a multi-year agreement with carbon removal platform Carbonfuture to purchase at least 40,000 tonnes of durable carbon dioxide removal (CDR) credits. The deal ranks among the largest carbon removal procurements in the aviation sector so far.

The carbon credits will come from a portfolio of biochar carbon removal projects, mainly located across the Global South. Biochar is created by heating plant material in a low-oxygen environment. The process converts biomass into a stable form of carbon that can be stored in soil for long periods.

Carbonfuture will track each credit using its digital monitoring system. The platform records the entire carbon removal process—from biochar production to soil application. It also verifies ownership of the credits.

The agreement helps Boeing tackle emissions that technology or fuel changes can’t eliminate yet. The company plans to apply these credits to Scope 3 emissions linked to business travel.

Allison Melia, VP Global Enterprise Sustainability, Boeing, said:

“To support long-term global demand for air travel, the aviation industry has set goals to reduce emissions. We’re excited to team up with Carbonfuture to support technological innovation in carbon removals to help meet these needs.”

This partnership reflects a broader shift in corporate climate strategies. Many industries now combine emissions reductions with carbon removal to manage their climate impact.

Why Aviation Is Turning to Carbon Removal

Decarbonizing aviation is difficult. Aircraft can last for decades, and alternatives like hydrogen planes or fully electric aircraft are still years away from wide use.

The aviation sector produces around 2–3% of global carbon dioxide emissions, based on research from energy and industry studies. When scientists look at the warming effects of contrails and other non-CO₂ emissions, aviation’s climate impact gets bigger.

Demand for flights also continues to grow. Rising global travel has offset many efficiency improvements in aircraft design and operations.

Sustainable aviation fuel (SAF) is one promising solution. However, SAF still accounts for less than 1% of global jet fuel supply and often costs two to ten times more than conventional jet fuel.

Because of these limits, aviation companies are turning to carbon removal technologies. These systems physically remove carbon dioxide from the atmosphere rather than simply avoiding emissions.

Boeing’s deal with Carbonfuture shows how carbon removal can complement other decarbonization strategies.

Biochar Carbon Removal: Turning Biomass Into Long-Term Carbon Storage

The credits in Boeing’s deal come from biochar-based carbon removal projects. Biochar forms through a process called pyrolysis. Organic waste, such as crop residues or forestry by-products, is heated in a low-oxygen environment. This converts the biomass into a carbon-rich charcoal.

When biochar is added to soil, it can store carbon for hundreds of years while improving soil health and water retention.

The projects in Boeing’s agreement also provide environmental benefits beyond carbon storage. Biochar can increase soil fertility, improve crop yields, and support agricultural resilience in regions facing land degradation.

• MUST READ: Biochar Carbon Credits in 2025: Stable Prices Amid Weakening Demand

Carbonfuture’s digital platform tracks every stage of the carbon removal process. This monitoring system aims to increase transparency and trust in carbon credit markets.

High-quality verification matters. Voluntary carbon markets have faced criticism for weak oversight and questionable offset projects.

Inside Boeing’s Emissions Footprint and Net-Zero Strategy

The carbon removal agreement is part of Boeing’s broader sustainability strategy. Like many aerospace companies, the aerospace giant faces large emissions from its value chain. Most of its climate impact comes from Scope 3 emissions. These include airline aircraft operations and other indirect activities.

Boeing’s total carbon footprint is estimated at around 374 million metric tons of CO₂ equivalent for 2024. Of this, about 373 million tons are from Scope 3 sources.

Direct emissions from Boeing operations are much smaller. The company reported about 517,000 tons of Scope 1 emissions and 464,000 tons of Scope 2 emissions from purchased electricity.

Because Scope 3 emissions dominate aviation’s footprint, companies must work across the entire ecosystem. That includes airlines, fuel suppliers, airports, and aircraft manufacturers.

The ariplane maker says its strategy focuses on four main areas:

• improving aircraft fuel efficiency,
• supporting sustainable aviation fuel development,
• advancing new propulsion technologies, and
• using carbon removal for residual emissions.

Carbon removal purchases help address emissions that cannot yet be eliminated through technological change.

• SEE MORE: Boeing Partners With Charm Industrial to Remove 100,000 Tons of CO₂

Corporate Demand Is Fueling the Carbon Removal Market

Boeing’s deal also reflects rapid growth in the carbon removal market. Corporate demand for carbon dioxide removal has expanded in recent years. Many companies now view durable removals as a key tool for meeting net-zero climate targets.

Recent data shows that high-durability carbon removal credits hit nearly 8 million metric tons in 2024. This is up from about 2.4 million tons in 2023. That’s a jump of around 233% in just one year, according to CDR.fyi.

Analysts expect carbon removal demand to rise sharply over the next decade as climate targets tighten. BCG estimates that annual demand for carbon removal might hit 40–200 million tons of CO₂ by 2030. It could grow further to 80–900 million tons by 2040 as more companies commit to net-zero goals.

New technologies such as biochar, direct air capture, and mineralization are gaining attention from investors and large corporate buyers.

Early demand will likely come from voluntary corporate buyers. These buyers could make up about 90% of carbon removal purchases soon as companies are looking for high-quality solutions to tackle hard-to-eliminate emissions.

Large technology companies such as Alphabet, Stripe, and Microsoft currently dominate the market. Microsoft alone purchased about 5.1 million tons of durable carbon removal credits in 2024, representing around 63% of total market demand.

Earlier, Boeing signed another major removal agreement with carbon removal firm Charm Industrial. That deal targeted up to 100,000 tons of CO₂ removal, showing the company’s growing interest in durable climate solutions.

Aviation’s Net-Zero Path: Fuel Innovation Meets Carbon Removal

The Boeing–Carbonfuture agreement highlights a growing trend in hard-to-abate industries. Aviation, steel, shipping, and cement all face similar challenges. These sectors depend on energy-dense fuels and long-lived infrastructure.

Because of this, companies are exploring multiple climate strategies at once. These include:

• new aircraft designs,
• sustainable aviation fuels,
• operational efficiency improvements, and
• carbon removal technologies.

Durable carbon removal is increasingly viewed as a bridge solution. It can help manage emissions while new technologies mature.

As global air travel grows, airlines and aircraft makers will face more pressure. They need to show clear paths for decarbonization.

Scaling Climate Solutions for Hard-to-Abate Sectors

Boeing’s carbon removal partnership with Carbonfuture marks an important step in aviation’s evolving climate strategy. The agreement will secure at least 40,000 tonnes of durable carbon removal credits, making it one of the largest such deals in the aerospace sector.

Carbon removal won’t solve aviation’s emissions issue by itself. However, it can support fuel innovation, improve efficiency, and help with cleaner energy systems.

As industries move toward net-zero targets, carbon removal markets are likely to grow rapidly. For companies across transportation, the path to a low-carbon future will rely on a mix of technological breakthroughs and credible climate solutions.

• READ MORE: Joby Aviation’s 2027 Vision: Four Electric Air Taxis per Month and Stronger Emission Cuts Amid Advanced Air Mobility Boom

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