Standard Lithium Files Positive Preliminary Economic Assessment for the High-Grade 70,000 Tonnes Per Year Franklin Project in East Texas
The partnership targets over 100,000 tonnes of annual lithium chemical production in Texas through multiple phases and projects.
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Rhea-AI Summary
Standard Lithium (SLI) and partner Equinor have filed a preliminary economic assessment for the Franklin lithium project in northeast Texas. The study models up to 70,000 tonnes of annual battery-quality lithium carbonate capacity and 1.29 million tonnes of total production over 20 years. Initial production could begin in the early 2030s.
The preliminary model estimates an unlevered pre-tax net present value, discounted at 8%, of US$5.9 billion, a 25.7% internal rate of return and a three-year payback period. Average annual lithium cash operating cost is US$4,226 per tonne, with capital intensity of US$49,945 per tonne. Outputs use 100% project ownership without financing adjustments; Standard Lithium's economic interest is 55%. The project area expanded 37% to 44,541 hectares, supporting an upgraded and enlarged mineral resource. The study also considers a co-located bromine facility producing 50,000 tonnes annually.
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Hollow bars mark forward-looking points. How the balance works
Positive
- Major point. Forward-looking: it has not happened yet and may not happen.Preliminary economics estimate US$5.9 billion unlevered pre-tax NPV at 8% on a 100% ownership basis.
- Moderate point. Forward-looking: it has not happened yet and may not happen.Franklin's modelled lithium carbonate capacity reaches up to 70,000 tonnes annually, totalling 1.29 million tonnes over 20 years.
- Moderate pointUpgraded and enlarged mineral resource accompanies a 37% project-area increase to 44,541 hectares.
- Moderate point. Forward-looking: it has not happened yet and may not happen.Partnership targets over 100,000 tonnes annually of Texas lithium chemical production through multiple phases and projects.
- Minor point. Forward-looking: it has not happened yet and may not happen.Preliminary economics estimate a 25.7% internal rate of return and a three-year payback period.
3 minor points
- Minor pointModelled brine lithium concentrations start at 562 mg/L and average 515 mg/L.
- Minor point. Forward-looking: it has not happened yet and may not happen.Potential co-located bromine facility is modelled at 50,000 tonnes per year.
- Minor point. Forward-looking: it has not happened yet and may not happen.Standard Lithium and Equinor anticipate further evaluating bromine and potash commercial opportunities.
Negative
- Moderate point. Forward-looking: it has not happened yet and may not happen.Initial production could begin in the early 2030s, rather than providing near-term output.
- Minor point. Forward-looking: it has not happened yet and may not happen.Franklin economics remain preliminary; the assessment recommends advancing to a preliminary feasibility study.
- Minor point. Forward-looking: it has not happened yet and may not happen.Modelled average annual lithium cash operating cost is US$4,226 per tonne.
- Minor point. Forward-looking: it has not happened yet and may not happen.Modelled capital intensity is US$49,945 per tonne of capacity.
News Explained
The PEA’s principal recommendation is to advance Franklin to a preliminary feasibility study, while Standard Lithium and Equinor continue direct lithium extraction testing on the brine, drawing on experience from the company’s demonstration plant and South West Arkansas project.
Key Figures
- Annual production capacity
- 70,000 tonnes per year
- Battery-quality lithium carbonate
- Total production
- 1.29 million tonnes
- Lithium carbonate over a 20-year modelled operating life
- Unlevered pre-tax NPV8
- $5.9 billion
- Franklin PEA
- Internal rate of return
- 25.7%
- Franklin PEA
- Payback period
- 3 years
- Franklin PEA
- Cash operating cost
- $4,226/t
- Average annual lithium cash operating cost
- Capital intensity
- $49,945/t
- Franklin PEA
- Economic interest
- 55%
- Standard Lithium's interest in the Project
Historical Context
-
Reported Franklin PEA economics and production capacity before the technical report was filed.
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Key Terms
preliminary economic assessment technical
net present value financial
internal rate of return financial
direct lithium extraction technical
preliminary feasibility study technical
AI-generated analysis. How Rhea-AI works. Not financial advice.
LEWISVILLE, Ark., Oct. 20, 2026 (GLOBE NEWSWIRE) -- Standard Lithium (“Standard Lithium” or the “Company”) (NYSE.A: SLI) (TSXV: SLI), in partnership with Equinor, announced today that the Preliminary Economic Assessment Technical Report (the “PEA” or the “Report”) for the Franklin project (“Franklin”, the “Project”, or the “Franklin Project”) in the northeast region of Texas, USA, has been filed on SEDAR+.
The Report for the Franklin Project, the partnership’s first defined project area in the East Texas region of the Smackover Formation, highlights the globally significant size and high quality of its brine position. The Report marks a key step towards the partnership’s goal of reaching over 100,000 tonnes (“t”) of lithium chemical production per year in Texas through multiple phases and projects.
The PEA contemplates annual production capacity of up to 70,000 tonnes of battery-quality lithium carbonate and 1.29 million tonnes of total lithium carbonate production over a 20-year modelled operating life, with a starting lithium concentration of 562 mg/L and an average lithium concentration of 515 mg/L. Initial production could begin in the early 2030’s with additional potential for a longer operating life and further expansion, though this is not modelled in the Report.
The PEA for the lithium Project is highlighted by attractive economics, including an unlevered pre-tax net present value (“NPV8”) of
The Report also considers a scenario based on a co-located bromine facility of 50,000 tonnes per year alongside the lithium operation. Standard Lithium and Equinor anticipate further evaluating potential commercial opportunities for both bromine and potash given the significant scale and quality of the resources, as well as the designation of potash as a U.S. critical mineral in 2025.
The principal recommendation of the PEA is to advance the Franklin Project to a Preliminary Feasibility Study (“PFS”). The partnership will continue to conduct direct lithium extraction (“DLE”) testing of the Project brine, leveraging insights gained at Standard Lithium’s Demonstration Plant, as well as at the South West Arkansas Project (“SWA Project”).
All figures are in US dollars and all units are metric unless otherwise stated. All model outputs are expressed on a
The Report is available for review under the Company’s profile on SEDAR+ at www.sedarplus.ca and on the Company’s website at https://www.standardlithium.com/projects/smackover. For highlights of this Report, please refer to the Company’s news release dated 8 September 2026.
Qualified Persons
All scientific and technical disclosure in this news release was reviewed and approved by Mr. Stephen Ross, P.Geo., British Columbia, Vice President of Resource Development for Standard Lithium and a Qualified Person for purposes of, and as that term is defined in, National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”). Mr. Ross is not independent of the Company.
About Standard Lithium
Standard Lithium is a leading near-commercial lithium development company focused on the sustainable development of a portfolio of large, high-grade lithium-brine properties in the United States. The Company prioritizes projects characterized by high-grade resources, robust infrastructure, skilled labor, and streamlined permitting. Standard Lithium aims to achieve sustainable, commercial-scale lithium production via the application of a scalable and fully integrated DLE and purification process. The Company’s flagship projects are in the Smackover Formation, an attractive lithium brine asset, focused in Arkansas and Texas. In partnership with global energy leader Equinor, Standard Lithium is advancing the SWA Project, a greenfield project located in southern Arkansas, and actively advancing a promising lithium brine resource position in East Texas, including the highest known lithium brine grade project in North America, the Franklin Project.
Standard Lithium trades on both the TSX Venture Exchange (“TSXV”) and the NYSE American under the symbol “SLI”. Visit the Company’s website at www.standardlithium.com for more information.
About Smackover Lithium
Smackover Lithium is a partnership between Standard Lithium and Equinor, through subsidiaries of Equinor ASA. Formed in May 2024, Smackover Lithium is developing multiple DLE projects in Southwest Arkansas and East Texas. Standard Lithium owns a
About Equinor
Equinor is an international energy company committed to long-term value creation in a low-carbon future. Equinor’s portfolio of projects encompasses oil and gas, renewables, and low-carbon solutions, with an ambition of becoming a net-zero energy company by 2050. Headquartered in Norway, Equinor is the leading operator on the Norwegian continental shelf and has offices in more than 20 countries worldwide. Equinor’s partnership with Standard Lithium to mature DLE projects builds on its broad US energy portfolio of oil and gas, offshore wind, low carbon solutions, and battery storage projects.
For more information on Equinor in the U.S., please visit: Equinor in the US - Equinor.
Investor Inquiries
Daniel Rosen
+1 604 409 8154
investors@standardlithium.com
Media Inquiries
Use of Non-GAAP Measures
Certain financial measures referred to in this news release are not measures recognized under International Financial Reporting Standards (“IFRS”) and are referred to as non-GAAP financial measures or ratios. These measures have no standardized meaning under IFRS and may not be comparable to similar measures presented by other companies. The definitions established and calculations performed by the Company are based on management’s reasonable judgement and are consistently applied. These measures are intended to provide additional information and should not be considered in isolation or as a substitute for measures prepared in accordance with IFRS.
The non-GAAP financial measure used in this news release and common to the lithium industry is average annual cash operating cost per tonne.
Average annual cash operating cost per tonne is a non-GAAP financial measure and has no standardized meaning under IFRS Accounting Standards and may not be comparable to similar measures used by other issuers. As the Franklin Project is not in production, the Company does not have historical non-GAAP financial measures nor historical comparable measures under IFRS, and therefore the foregoing prospective non-GAAP financial measures or ratios may not be reconciled to the nearest comparable measures under IFRS.
Cautionary Note Regarding Forward-Looking Statements
Neither the TSXV nor its Regulation Services Provider (as that term is defined in policies of the TSXV) accepts responsibility for the adequacy or accuracy of this news release.
This news release may contain certain “Forward-Looking Statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995 and applicable Canadian securities laws. Forward-looking statements in this news release include, but are not limited to, the Company’s expectations and estimates with respect to: the economic and scoping-level parameters of the Franklin Project, including the unlevered pre-tax NPV, IRR, payback period, average annual lithium cash operating cost and capital intensity; anticipated annual production capacity of battery quality lithium carbonate; total lithium carbonate production and the 20-year modelled operating life; the potential for a longer operating life and further expansion of the Franklin Project; the anticipated timing of initial production; the partnership’s goal of reaching over 100,000 tonnes of lithium chemical production per year in Texas; the anticipated timeline for completion of any future PFS, including targeting completion of the Franklin PFS in 2027; Mineral Resource estimates, including the average lithium concentration and size and quantity of the brine position; the cost and timing of any development of the Franklin Project; the proposed mine plan and mining methods; mining recoveries; processing method and rates; the potential co-located bromine facility and its anticipated production capacity; potential commercial opportunities for, and potential value of, bromine and potash production at the Franklin Project; production rates; continued DLE testing of Project brine; the partnership’s ability to leverage insights gained at the Demonstration Plant and SWA Project; energy sources; and general business and economic conditions.
Statements relating to “Mineral Resources” are deemed to be forward-looking statements, as they involve the implied assessment, based on certain estimates and assumptions that the Mineral Resources described can be profitably produced in the future. Generally, forward-looking statements can be identified using forward-looking terminology. Wherever possible, words such as “may”, “will”, “should”, “could”, “expect”, “plan”, “target”, “forecast”, “schedule”, “prospective”, “envision”, “continue”, “intend”, “assume”, “anticipate”, “believe”, “estimate”, “budget”, “predict”, “project” or “potential” or the negative or other variations of these words, or similar words or phrases, have been used to identify these forward-looking statements. These statements reflect management’s current beliefs and are based on information currently available to management as at the date hereof.
All statements other than statements of historical fact may be forward-looking statements. Forward-looking statements involve significant risk, uncertainties and assumptions. Many factors could cause actual results, performance or achievements to differ materially from the results discussed or implied in the forward-looking statements. Such factors include, among other things: risks related to the inherent uncertainties regarding cost estimates; the preliminary nature of the PEA and the risks that the results of the PEA, and any future PFS, may not be realized; the risk that Inferred Mineral Resources may never be upgraded or converted to Mineral Reserves; the use of non-GAAP measures in financial performance accounting; changes in commodity and lithium prices; currency fluctuation; financing; unanticipated resource grades and process recoveries; infrastructure; results of future exploration activities; cost overruns; availability of materials and equipment; timeliness of government approvals; political risk and related economic risk; unanticipated environmental impact on operations; and risks associated with executing the Company’s plans and intentions. These factors should be considered carefully, and readers should not place undue reliance on the forward-looking statements. Although the forward-looking statements contained in this news release are based upon what management believes to be reasonable assumptions, the Company cannot assure readers that actual results will be consistent with these forward-looking statements. Additionally, while the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. These forward-looking statements are made as of the date of this news release, and the Company assumes no obligation to update or revise them to reflect new events or circumstances, except as required by law.
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What production capacity does Standard Lithium's Franklin assessment model?
The assessment models annual capacity of up to 70,000 tonnes of battery-quality lithium carbonate and total production of 1.29 million tonnes over a 20-year operating life. Initial production could begin in the early 2030s. Potential extensions to operating life and further expansion are not modelled.
What are the estimated economics of Standard Lithium's Franklin project?
The preliminary assessment estimates an unlevered pre-tax net present value of US$5.9 billion at an 8% discount rate, a 25.7% internal rate of return and a three-year payback period. Model outputs reflect 100% ownership without financing adjustments, while Standard Lithium holds a 55% economic interest.
What work comes next for Standard Lithium's Franklin project?
The assessment recommends advancing Franklin to a preliminary feasibility study. The partnership will continue testing direct lithium extraction, a process for extracting lithium from brine, using Franklin brine and insights from Standard Lithium's Demonstration Plant and South West Arkansas Project.