Stricken language would be deleted from and underlined language would be added to present law. *CRH339* 04/14/2025 2:33:21 PM CRH339 State of Arkansas 1 95th General Assembly A Bill 2 Regular Session, 2025 SENATE BILL 645 3 4 By: Senator Crowell 5 6 7 For An Act To Be Entitled 8 AN ACT TO AMEND THE LAW CONCERNING NATURAL RESOURCES; 9 TO CONDUCT A STUDY RELATED TO CRITICAL MINERALS; AND 10 FOR OTHER PURPOSES. 11 12 13 Subtitle 14 TO CONDUCT A STUDY RELATED TO CRITICAL 15 MINERALS. 16 17 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS: 18 19 SECTION 1. DO NOT CODIFY. Legislative findings — Study. 20 (a) The General Assembly finds that: 21 (1) Critical minerals are essential for various industries, 22 including without limitation energy, defense, and technology; 23 (2) Ensuring energy independence for the United States requires 24 a diversified approach, including without limitation supply chain 25 diversification and capital investment attractiveness in value -added 26 manufacturing; 27 (3) Lithium recovery projects are recognized as essential to the 28 continued growth and development of Arkansas's critical energy resources and 29 the prosperity of its citizens; 30 (4) Global demand for lithium is expected to quadruple by 2030, 31 necessitating proactive efforts to support domestic lithium production to 32 reduce reliance on foreign imports and bolster energy security; 33 (5) Encouraging lithium recovery will provide economic benefits 34 to Arkansas, attract investment, create jobs, and strengthen the state’s 35 industrial and manufacturing base; 36 SB645 2 04/14/2025 2:33:21 PM CRH339 (6) Reducing statutory and regulatory roadblocks, including 1 those related to state and local taxes, permit fees, payments, 2 infrastructure, and workforce development, will create an optimal economic 3 ecosystem to support lithium recovery and related industries; and 4 (7) Arkansas's first -mover advantage is being threatened by an 5 increase of lithium exploration and development opportunities in Louisiana, 6 Texas, and other states where policymakers are enacting incentives and taking 7 steps to provide regulatory certainty. 8 (b)(1) The General Assembly shall conduct a study to evaluate the 9 state’s national and global competitiveness in attracting lithium recovery 10 projects and related value -added manufacturing and supply -chain activities. 11 (2) The study required under subdivision (b)(1) of this section 12 shall: 13 (A) Assess the competitiveness of Arkansas using a matrix 14 consistent with factors utilized by companies engaged in lithium recovery and 15 related activities; 16 (B) Identify potential developmental impediments, 17 including without limitation state and local taxes, permit fees, payments, 18 regulatory burdens, and other government -induced or imposed activities; 19 (C) Evaluate infrastructure needs, including without 20 limitation rail, roads, water supply, and electricity transmission and 21 distribution necessary for lithium recovery and processing projects; 22 (D) Examine workforce availability and training programs 23 to ensure a skilled labor force to support the lithium industry; and 24 (E) Provide recommendations to enhance Arkansas’s 25 attractiveness for investment in lithium recovery and associated value -added 26 manufacturing. 27 28 29 30 31 32 33 34 35 36