UNITED STATES OF AMERICA —A joint venture in East Texas has outlined plans for a commercial-scale direct lithium extraction operation capable of delivering up to 70,000 tonnes of battery-quality lithium carbonate annually. The Preliminary Economic Assessment for the Franklin Project projects an initial capital investment of $3.5 billion, yielding an after-tax net present value of $5.0 billion and an internal rate of return of 24 percent based on an 8 percent discount rate. Over a modeled 20-year operational life span, average annual output is estimated at roughly 65,000 tonnes, supported by low cash operating costs of $4,226 per tonne.
This development provides a significant boost to North American critical mineral independence by commercializing high-grade lithium brine deposits outside traditional mining regions. By scaling local extraction capacities, the project aims to reduce dependence on foreign processing hubs and stabilize domestic raw material feeds necessary for electric vehicle battery manufacturing and grid-scale energy storage solutions.
The initiative highlights growing commercial interest in non-conventional mineral extraction, particularly within established energy corridors across Texas and Arkansas. Regional infrastructure, including transportation networks and subsurface fluid management expertise from legacy oil and gas sectors, provides a foundation for rapid development. Furthermore, the presence of secondary resources such as bromine and potash within the brine presents future potential for multi-mineral revenue streams across chemical and agricultural sectors.
For energy transition investors and industrial manufacturers, the project demonstrates the economic viability of direct lithium extraction technologies over traditional evaporation ponds. Utilizing technical frameworks established in neighboring projects, the partnership plans to transition the site into a Preliminary Feasibility Study targeted for completion in 2027, setting up potential commercial operation in the early 2030s.
Smackover Lithium operates as a joint venture between Standard Lithium, an American critical minerals developer specializing in direct lithium extraction technology, and Equinor, a global energy group headquartered in Norway. Standard Lithium maintains a 55 percent controlling interest and serves as the primary project operator.
