Standard Lithium and Equinor file PEA for Texas Franklin lithium project
+2 new sources since this summary was written
Standard Lithium and its partner Equinor released a Preliminary Economic Assessment for the Franklin project in East Texas. The study models up to 70,000 tonnes of lithium carbonate per year and a total of 1.29 million tonnes over a 20‑year life, with production slated to start in the early 2030s. The PEA shows an unlevered pre‑tax NPV8 of $5.9 billion and an internal rate of return of 25.7%, and recommends moving to a Preliminary Feasibility Study.
Why it matters
The company says the $5.9 billion NPV and 25.7% IRR demonstrate strong economics that could underpin future cash flow and support its goal of scaling lithium production in the United States (source). Advancing to a feasibility study may bring the project closer to commercial operation, potentially enhancing Standard Lithium’s valuation.
Key facts
- 1The PEA models annual lithium carbonate production capacity of up to 70,000 tonnes. stocktitan.net
- 2The model projects 1.29 million tonnes of total lithium carbonate production over a 20‑year operating life. stocktitan.net
- 3The unlevered pre‑tax NPV8 is estimated at $5.9 billion. tradingview.com
- 4The internal rate of return is calculated at 25.7%. tradingview.com
- 5Average cash costs are projected at $4,226 per tonne of lithium carbonate. tradingview.com
- 6Initial production could begin in the early 2030s. stocktitan.net
Summary written by AlphAI AI Desk from 2 of 2 sources. Not investment advice. Figures are as stated by the linked sources.