Standard Lithium Files Franklin Study With $5.9B NPV, 25.7% IRR

Standard Lithium filed a preliminary economic assessment technical report for its Franklin lithium project in northeast Texas on Oct. 20, detailing projected economics for a project with capacity of up to 70,000 metric tons of lithium carbonate a year.

The assessment estimates a $5.9 billion pre-tax, unlevered net present value at an 8% discount rate. It also projects a 25.7% internal rate of return and a three-year pre-tax payback period beginning when operations start. The model assumes a lithium carbonate price of $22,400 per metric ton and covers 100% of the project’s economics; Standard Lithium’s economic interest is 55%.

The project model gives average production of 64,600 metric tons a year over a modeled 20-year operating life, totaling 1.29 million metric tons. Initial production could begin in the early 2030s.

The report recommends moving Franklin to a preliminary feasibility study. Smackover Lithium, the Standard Lithium–Equinor partnership, announced the assessment’s results Sept. 8. The partnership plans to continue direct lithium extraction testing.