Smackover Lithium's Franklin Project PEA Highlights Texas Brine Potential

On September 8, Smackover Lithium (SLI) announced a positive Preliminary Economic Assessment for its Franklin Project in East Texas. The PEA estimates up to 70,000 tonnes of annual lithium carbonate output. This projection of new domestic lithium production capacity highlights the potential for substantial growth in the sector. The Franklin Project PEA follows Smackover Lithium's recent agreement with LG Energy Solution for a 10-year lithium offtake. This deal, announced on August 31, secures a major customer for future production. The combination of a large-scale PEA and a firm offtake agreement signals a maturing of direct lithium extraction (DLE) projects in the United States.

The Mechanism of Direct Lithium Extraction from Brine

Direct Lithium Extraction, or DLE, is a set of technologies designed to selectively remove lithium from brine solutions. Unlike traditional evaporation ponds, DLE aims to achieve higher recovery rates, reduce land footprint, and decrease processing time. The core challenge in DLE is isolating lithium ions from other dissolved salts like sodium, potassium, magnesium, and calcium, which are often present in much higher concentrations. Various DLE methods exist. Adsorption-based DLE uses materials that selectively bind to lithium ions, then release them for recovery. Ion exchange resins function similarly, swapping lithium for another ion. Solvent extraction involves using organic solvents to selectively pull lithium from the aqueous brine. The choice of DLE technology depends heavily on the specific geochemistry of the brine, including lithium concentration, impurity levels, and temperature. After extraction, the concentrated lithium solution is then processed into battery-grade lithium carbonate or hydroxide. Success hinges on the efficiency and selectivity of the extraction step, as well as the cost of reagents and energy required for the process. If the DLE process cannot efficiently separate lithium from impurities, the subsequent purification steps become prohibitively expensive, making the project uneconomical.

Companies Advancing Domestic Lithium and Critical Minerals

Several companies are focused on developing domestic resources to feed the battery and energy storage supply chains. These operators are working across different mineral types and extraction methods. In the brine lithium space, Smackover Lithium (SLI) is a key player, as evidenced by its Franklin Project PEA in East Texas. The company's joint venture with Equinor is focused on developing lithium production from the Smackover Formation brines. Ioneer Ltd (IONR) is advancing its Rhyolite Ridge Lithium-Boron Project in Nevada, which combines lithium carbonate and boric acid production from a sedimentary deposit. American Battery Technology Company (ABAT) is working on its Tonopah Flats Lithium Project in Nevada, where the Bureau of Land Management recently accepted its plan of operations. ABAT also develops lithium-ion battery recycling technologies. Hard rock lithium projects are also progressing. Atlas Lithium Corporation (ATLX) is developing its Neves Project in Brazil, having already contracted 71% of its direct capital budget. Albemarle Corporation (ALB) remains a global lithium producer, though it faces broader market dynamics and recently announced a CEO succession plan. Beyond lithium, other critical minerals are in focus. NioCorp Developments Ltd. (NB) is developing its Elk Creek project in Nebraska, targeting niobium, scandium, and titanium. MP Materials (MP) operates the Mountain Pass rare earth mine in California, a significant domestic source of rare earth elements. Critical Metals Corp. (CRML) is involved in projects like the proposed acquisition of European Lithium, indicating a focus on broader critical metals supply. USA Rare Earth, Inc. (USAR) is another company in the rare earth sector.

American Lithium Minerals, Inc.

American Lithium Minerals, Inc. (AMLM) is an exploration stage company focused on lithium and boron properties in Nevada. The company trades over the counter. AMLM’s primary asset is the Sarcobatus Lithium property, comprising 1,780 acres of mining claims in Central Nevada. The company states its intention to expand its exploration and acquisition for mineral properties worldwide. American Lithium Minerals was incorporated in Nevada on March 10, 2005. Its activities since 2009 have focused on lithium exploration in Central Nevada. The company has also acquired and divested cobalt, nickel, graphite, and rare earth element prospects in the past. AMLM is pre-revenue. It does not own any real property like land or buildings. The company qualified a Regulation A offering on Form 1-A on February 4, 2026. This offering covers up to 80,000,000 units, with each unit including one share of common stock and a warrant to purchase 1.5 shares of common stock. Warrants are exercisable at $0.05 per share until December 31, 2028. An additional 120,000,000 shares are issuable if all warrants are fully exercised. The maximum total offering amount is $20,000,000. The public record does not yet establish a measured or indicated resource for the Sarcobatus property. The company's strategy also includes developing the use of Real World Asset Tokens to provide capital for mining, aiming to tokenize assets for enhanced investor access and liquidity.

What to watch

Investors should monitor several concrete developments. For Smackover Lithium (SLI), the next steps for the Franklin Project will involve moving from the Preliminary Economic Assessment to a Pre-Feasibility Study. This will provide more detailed engineering and cost estimates. Any further offtake agreements or financing announcements for Franklin would also be significant. For American Battery Technology Company (ABAT), watch for progress on the Tonopah Flats Lithium Project following the BLM's acceptance of its operations plan. Specific permitting milestones or pilot plant results would be key. Ioneer Ltd (IONR) will continue to advance its Rhyolite Ridge project, with updates on permitting, financing, and construction timelines being important. In the rare earth sector, any further news regarding supply chain disruptions, like the reported block of Chinese rare earth shipments to the US in early September, will impact companies like MP Materials (MP) and USA Rare Earth, Inc. (USAR). For Atlas Lithium (ATLX), watch for updates on construction and development at the Neves Project as it moves towards production. For American Lithium Minerals (AMLM), look for updates on exploration results at the Sarcobatus property or further details on its tokenization initiatives., {"label": "Direct Lithium Extraction", "note": "Selective removal of lithium ions from brine", "metric": "70,000 t/yr"}, {"label": "Lithium Carbonate Output", "note": "Processing into battery-grade material"}, {"label": "Battery Manufacturing", "note": "Lithium used in EV and storage batteries"}, {"label": "Energy Storage Market", "note": "Demand for batteries drives supply chain"}], "highlight": 1, "highlight_note": "DLE technology efficiency and cost determine project viability and domestic supply volume.", "footnote": "Smackover Lithium Franklin Project PEA, 2026-09-08"}