Standard Lithium Ltd. has delivered an unlevered after-tax net present value of US$5.0 billion and an internal rate of return of 24% for a preliminary economic assessment on the Franklin Project in northeast Texas.

The study models an annual production capacity of up to 70,000 tonnes of battery-quality lithium carbonate over a 20-year operating life. The project requires an initial capital expenditure of $3.5 billion, resulting in a capital intensity of $49,945 per tonne, and is projected to generate average annual cash operating costs of $4,226 per tonne.

The preliminary economic assessment incorporates an upgraded and expanded mineral resource estimate for the property, which is held by Smackover Lithium, a 55:45 partnership between Standard Lithium and Equinor formed in May 2024, with Standard Lithium acting as developer and operator. The updated resource comprises 1.77 million tonnes of indicated lithium carbonate equivalent at an average concentration of 562 mg/L and 2.13 million tonnes of inferred lithium carbonate equivalent at 572 mg/L.

This compares with the maiden inferred resource report, which estimated 2,159,000 tonnes of lithium carbonate equivalent. The Franklin Project represents the partnership's first defined project in East Texas, supporting a broader corporate goal of reaching well over 100,000 tonnes of lithium chemical production per year in the state through multiple phases.

“The Franklin PEA demonstrates the strength of arguably one of the largest and highest-quality lithium brine resources in North America, supporting an attractive standalone lithium operation with additional potential value from bromine and potash. Continued Project definition through our resource development, processing expertise and mineral leasing activities has resulted in a meaningful increase and upgrade to the Mineral Resource while highlighting very attractive and robust Project economics. These latest results establish a strong foundation to advance the Franklin Project as the first of our planned large-scale critical minerals projects in East Texas and underscore the scale and national importance of the partnership’s broader resource position being developed in the region.” — Dr. Andy Robinson, President and COO of Standard Lithium

Smackover Lithium plans to advance the Franklin Project to a preliminary feasibility study targeted for completion in 2027.

Read the full announcement: Smackover Lithium Announces Positive Preliminary Economic Assessment for the Franklin Project, Its First Lithium Project in East Texas