What's Happening?
Smackover Lithium, a joint venture between Standard Lithium and Equinor, has filed its first inferred resource report for the Franklin project located in north-east Texas. The project boasts a resource of 2.16 million tonnes of lithium carbonate equivalent,
with an average lithium concentration of 668 milligrams per litre. Additionally, the resource includes 15.41 million tonnes of potash, recently added to the US Geological Survey's 2025 Draft Critical Mineral List, and 2.64 million tonnes of bromide within a brine volume of 0.61 cubic kilometers. The project area spans approximately 80,000 acres, with over 46,000 acres currently leased. This development marks a significant milestone for the joint venture's ambition to produce over 100,000 tonnes of lithium chemicals annually in Texas.
Why It's Important?
The filing of the resource report is crucial for the U.S. as it seeks to bolster its supply of critical minerals, including lithium, which is essential for battery production and renewable energy technologies. The Franklin project, with its high lithium-in-brine grades, positions the U.S. to enhance its domestic lithium production capabilities, reducing reliance on foreign sources. This development could have significant implications for the electric vehicle industry and other sectors dependent on lithium. The inclusion of potash in the critical mineral list further underscores the strategic importance of the project in supporting agricultural and industrial applications.
What's Next?
The joint venture plans to enhance the characteristics of the Upper and Middle Smackover Formation aquifers and evaluate reserve forecasts, necessitating the drilling of new appraisal wells and re-entering inactive wells for data collection. These efforts aim to support a preliminary feasibility study. Additionally, Smackover Lithium intends to conduct direct lithium extraction tests using insights from Standard Lithium's demonstration plant in Arkansas. The JV has also announced plans for two additional projects in East Texas, which could significantly expand its portfolio and production capacity.
Beyond the Headlines
The Franklin project's development could lead to long-term shifts in the U.S. mineral extraction industry, promoting sustainable practices and technological advancements in lithium extraction. The partnership between Standard Lithium and Equinor, with a $160 million investment, highlights the growing interest in sustainable lithium projects, potentially setting a precedent for future collaborations in the sector.
