Real estate investment trust PotlatchDeltic on Feb. 5 said it executed a lease agreement that gives Tetra Brine Leaseco exclusive rights to carry out brine exploration and production on land in Arkansas’ lithium-rich Smackover Formation.

The agreement covers about 900 surface acres in Lafayette County, according to a news release.

“We view the lease with Tetra as a great first step in demonstrating the lithium potential from our brine deposits,” said PotlatchDeltic CEO Eric Cremers. “We estimate we have 5,000 – 7,000 acres with lithium-bearing opportunities that are located within the higher-grade area in the Smackover Formation, where billions in future lithium-related investments have been announced.”

Several companies are working to develop lithium resources in the Smackover region. Though the formation spans from Texas to Florida, Arkansas has been a hotbed of activity. Lithium resources in Smackover brines of southern Arkansas could be between 5.1 MMtonnes and 19 MMtonnes, according to machine-learning estimates released in 2024 by the U.S. Geological Survey.

For the Tetra lease, PotlatchDeltic said it anticipates an initial five-year term for planning, engineering and construction before potential production begins. The lease provides for payments for the duration of the lease as well as future production payments for bromine and royalty payments for the profitable extraction of lithium, the release states.

Cremers said PotlatchDeltic is in talks with other parties about leases.

“We believe we are well-positioned to drive long-term value for our shareholders through all of our natural climate solution opportunities,” Cremers said.

PotlatchDeltic said it owns 2.1 million acres of timberlands in Alabama, Arkansas, Georgia, Idaho, Louisiana, Mississippi and South Carolina.

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