Smackover Lithium, a 55:45 partnership between Standard Lithium and Equinor, has announced positive results from a Preliminary Economic Assessment (PEA) for its Franklin Project in northeast Texas. The project represents the partnership’s first defined lithium development in the East Texas region of the Smackover Formation and marks an important milestone in its strategy to establish a large-scale domestic lithium supply chain.
The PEA highlights the significant scale and quality of Franklin’s lithium-rich brine resources and supports the potential development of a standalone lithium extraction and chemical production facility. The partnership aims to build multiple projects and production phases across Texas, with a long-term target of exceeding 100,000 tonnes of lithium chemicals annually.
The Franklin Project covers 44,541 hectares, or approximately 110,064 acres, across east Hopkins, Franklin and west Titus counties. The project center is located about 4.5 kilometers south of Mount Vernon, Texas, with access to Interstate 30, state highways and nearby rail infrastructure. Smackover Lithium has continued mineral leasing activities since 2022, and its resource position was supported by 1,196 brine and brine-sourced mineral leases as of July 20, 2026.
The project is designed around Direct Lithium Extraction (DLE) technology. Its brine characteristics are considered sufficiently similar to those of the company’s more advanced SWA Project, allowing Franklin to potentially use a comparable processing flowsheet. Third-party testing of Franklin brine achieved targeted lithium retention and rejection levels for sodium, potassium, calcium and magnesium. Higher lithium concentrations in Franklin’s feed brine could also support greater lithium recovery per unit of brine processed.
According to the PEA, Franklin could produce up to 70,000 tonnes per year of battery-quality lithium carbonate, with total modeled lithium carbonate production reaching 1.29 million tonnes over a 20-year operating period. Initial capital expenditure is estimated at $3.5 billion, while average cash operating costs are projected at $4,226 per tonne. Including sustaining capital, closure costs and brine royalties, average all-in costs are estimated at $5,054 per tonne.
The partnership plans to advance Franklin to a Preliminary Feasibility Study, targeted for completion in 2027. Further work will focus on refining aquifer characteristics, brine chemistry and DLE performance while evaluating potential commercial opportunities for bromine and potash.
Product and Chemical Commodity Price Impact
The announcement is bullish for lithium carbonate over the medium to long term because Franklin could add up to 70,000 tonnes/year of battery-grade production and strengthen U.S. domestic supply. However, the project remains at the PEA stage, with a PFS targeted for 2027 and a $3.5 billion capital requirement, so the immediate supply impact should be limited. If development progresses successfully, additional U.S. lithium supply could place downward pressure on lithium carbonate prices by improving regional availability and reducing import dependence. Potential bromine and potash production could similarly expand supply, but near-term price effects should remain minimal because commercial output is still years away.
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