October 13, 2025

Standard Lithium Partners with Equinor for New Texas Project

News Summary

Standard Lithium has announced a collaboration with Equinor to launch a $1.5 billion lithium extraction project in Northeast Texas, specifically near Lewisville, Lafayette County. This project, named the Franklin Project, aims to leverage the area’s rich brine resources, significantly enhancing the region’s potential for green energy and battery production. With lithium concentrations in brine exceeding 600 mg/L, the project represents a monumental step in sustainable energy and economic growth for East Texas.

Texas is set to become a major hub for lithium extraction as Standard Lithium collaborates with Equinor to establish a $1.5 billion brine extraction facility in the northeast region near Lewisville, Lafayette County. This project aims to produce over 100,000 tons of lithium chemicals annually, capitalizing on Texas’s richer brinefields compared to Arkansas, thus enhancing the supply of critical materials for battery production.

The initiative is backed by the joint venture, Smackover Lithium, which recently confirmed the presence of higher lithium concentrations in Texas brine, with samples indicating lithium levels exceeding 600 milligrams per liter. In contrast, Arkansas brine typically yields between 300 to 500 milligrams per liter. Situated along 46,000 acres of land alongside Interstate 30, west of Mount Pleasant, this strategic location comprises 617 mineral leases across Titus, Franklin, and Hopkins counties, collectively known as the Franklin Project. This region is reported to have the highest lithium-in-brine grades in North America.

Standard Lithium has been actively acquiring brine mineral leases in Texas since 2022. This extraction effort is part of a larger goal to produce lithium in a more efficient manner, as researchers indicate that extracting lithium from Arkansas requires 30% more brine than that from Texas to achieve equivalent yields. Furthermore, Smackover Lithium plans to significantly expand its Texas holdings with the addition of two new projects, following their initial success.

The most promising lithium concentration has been identified at the Pine Forest 1 well located near Winterfield, Texas. The Franklin Project is viewed as vital for future lithium production in the Smackover area, complementing ongoing efforts at the South West Arkansas Project. The latter includes plans for a commercial-scale lithium extraction plant, expected to make a final investment decision by the end of 2025, with construction projected to begin in 2026 and initial production slated for 2028. The initial phase aims for an output of 22,500 tons of battery-quality lithium carbonate per year.

Equinor’s financial commitment includes investing up to $160 million to secure a 45% stake in the joint venture while Standard Lithium retains 55%. This investment aligns with the U.S. Department of Energy’s approval of $225 million in federal funding earlier in January 2025, designed to support construction under the Battery Materials Processing and Battery Manufacturing Grants Program.

Standard Lithium firmly believes that the East Texas area represents an undervalued asset within their portfolio, and anticipates increased recognition based on the latest resource reports. Notably, Equinor’s Vice President for U.S. lithium highlighted the significance of these findings, indicating a significant milestone for the potential of the joint venture.

This collaborative effort between Standard Lithium and Equinor signifies a strategic move to bolster North America’s lithium production capabilities, addressing the growing demand for electric vehicle batteries and renewable energy storage solutions. As both projects in Texas and Arkansas evolve concurrently, they promise to play vital roles in the future of battery material supply chains.

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Author: STAFF HERE GEORGETOWN

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