Standard Lithium Q2 2026 Earnings Report

Standard Lithium EPS Results

• Actual EPS: N/A
• Consensus EPS: -$0.01
• Beat/Miss: N/A
• One Year Ago EPS: -$0.03

Standard Lithium Revenue Results

• Actual Revenue: N/A
• Expected Revenue: N/A
• Beat/Miss: N/A
• YoY Revenue Growth: N/A

Standard Lithium Announcement Details

• Quarter: Q2 2026
• Date: 8/6/2026
• Time: Before Market Opens
• Conference Call Date: Wednesday, August 12, 2026
• Conference Call Time: 4:30PM ET

Standard Lithium (NYSEAMERICAN:SLI) is a Canadian development-stage company focused on producing battery-grade lithium from brine resources in the United States. Its primary projects are located in southwestern Arkansas and are associated with the Smackover Formation, a region known for lithium-bearing brines.

The company is developing direct lithium extraction (DLE) technology designed to selectively remove lithium from brine before the remaining fluids are reinjected underground. Standard Lithium has operated a demonstration plant in Arkansas and is working to advance commercial-scale production of lithium compounds, including lithium carbonate, for use in electric-vehicle batteries, energy-storage systems, and other applications.

Standard Lithium has historically worked with industrial and energy partners, including LANXESS, to evaluate lithium recovery from brines produced during existing operations in the region. The company is also advancing additional lithium projects in the Smackover area. Robert Mintak has served as the company's chief executive officer and director, helping lead its efforts to commercialize DLE and establish a domestic U.S. lithium supply.

Standard Lithium Q2 2026 Earnings Call Transcript

Key Takeaways

• Positive Sentiment: Two major pre-FID milestones were completed: Standard Lithium signed primary construction agreements with Wood and S&B/Hatch, and the DOE concluded its NEPA review with a finding of no significant impact.
• Positive Sentiment: The Southwest Arkansas project remains targeted for final investment decision and construction later this year, with first commercial production of 22,500 tonnes per year of battery-grade lithium carbonate expected in 2029. Limited notices to proceed are already supporting engineering, procurement, scheduling, and vendor work.
• Neutral Sentiment: The two remaining FID requirements are finalizing customer offtake agreements and project financing. Management expects to announce one or two additional offtake agreements in the third quarter, while lender technical, environmental, financial, and insurance diligence proceeds without reported material red flags.
• Positive Sentiment: The company ended the quarter with $137.3 million in cash and is targeting approximately $1.1 billion in senior secured project debt, alongside the $225 million DOE grant and equity contributions from Standard Lithium and Equinor.
• Positive Sentiment: Standard Lithium plans to release a preliminary economic assessment for its Franklin project in East Texas during the third quarter, highlighting the region as a potential major growth platform with high-grade brines and possible development efficiencies from reusing its established technology and execution approach.

Presentation

[Operator]

Ladies and gentlemen, thank you for standing by. Welcome to Standard Lithium's second quarter 2026 conference call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a brief question and answer session. If you would like to ask a question, please press star one to raise your hand. To withdraw your question, press star one again. It is now my pleasure to turn today's call over to Daniel Rosen, VP of IR and Strategy for Standard Lithium. Please go ahead.

[Daniel Rosen, VP of Investor Relations and Strategy at Standard Lithium]

Thank you, and welcome everyone. I am joined today by David Park, our CEO and Director; Andy Robinson, President, COO and Director; Salah Gamoudi, Chief Financial Officer; and Mike Barman, Chief Development Officer. Before we begin, I would like to start with a reminder that some of the statements made during our call today, including any related to company performance, expectations, and timing of projects, may constitute forward-looking statements. Please note the cautionary language about forward-looking statements contained in our press release, which also applies to this call. I will now turn the call over to David.

[David Park, CEO and Director at Standard Lithium]

Thanks, Dan. I appreciate everyone joining us today. We had a very productive second quarter and year to date, as we continued to advance the important milestones and deliverables required in order for us to move our Southwest Arkansas project to a final investment decision later this year. To begin the year, we laid out the four primary deliverables required to be completed before taking FID. Executing our key construction contracts, completing a federal environmental review under the National Environmental Policy Act, or NEPA, finalizing our customer offtake agreements, and securing project financing. During the second quarter, we fully completed the first two of these objectives while continuing to advance the remaining two. We signed our two primary construction vendor agreements, separately covering the upstream well field and the downstream central processing facility.

[David Park, CEO and Director at Standard Lithium]

The U.S. Department of Energy concluded its NEPA review process with a finding of no significant impact and no additional mitigation measures or conditions put in place for us to proceed. These are very important milestones that were many months in the making. Together, they provide greater execution confidence, schedule visibility, and regulatory clarity as we prepare to move rapidly from development into construction. They also reflect the depth and quality of the work completed by our team alongside our partner, Equinor, while strengthening our first-mover advantage in the Smackover. Our focus is now on finalizing the two key remaining work streams, customer offtake and project financing. The partnership remains in advanced discussions with several prospective customers and aims to conclude all remaining offtake agreements in the third quarter, which will help to finalize the size and structure of the Southwest Arkansas project debt.

[David Park, CEO and Director at Standard Lithium]

Both processes are steadily progressing in parallel. Our expectations for this year remain unchanged. To approve FID and begin construction at the SWA project, resulting in first commercial production of battery quality lithium carbonate in 2029. We are also continuing to advance our broader set of opportunities in East Texas. We plan to release a preliminary economic assessment for the Franklin project in the third quarter, while continuing to improve our resource definition and expand our leasehold position across the region. With that, I will pass it over to Andy to discuss our progress in more detail.

[Andy Robinson, President, COO, and Director at Standard Lithium]

Thanks, David. in May, the Department of Energy issued its Finding of No Significant Impact, or FONSI, based on the comprehensive environmental assessment prepared for the SWA project. This marked the successful conclusion of the federal government's NEPA review, which was required in connection with the $225 million DOE grant that was awarded in January 2025 to support the development of our first 22,500 ton LCE phase of the project. The FONSI was the culmination of over a year of stakeholder engagement, field work, and baseline environmental studies, and reflects the detailed design of the project, which is intended to minimize surface disturbance while enabling responsible lithium production. The process also benefited from our designation as a priority critical minerals project under the government's FAST-41 transparency program. This means that we are now effectively complete in our permitting to enable taking FID and beginning construction.

[Andy Robinson, President, COO, and Director at Standard Lithium]

We also executed our two primary construction contracts for the SWA project during the second quarter. For the upstream well field, Smackover Lithium signed an engineering, procurement, and construction management, or EPCM agreement with Wood Group. Wood brings substantial experience managing complex, multidisciplinary projects globally across energy, lithium, and broader minerals. Wood will provide EPCM services for the well field surface facilities, pipelines, and third-party interfaces, as well as support for the subsurface drilling and well work that will be led by our project team, leveraging the benefit of Equinor's deep internal capabilities and know-how. For the downstream central processing facility portion of the project, we entered into an engineering, procurement, construction, and commissioning, or EPCC agreement with S&B Engineers and Constructors. S&B has proven large construction expertise with 55+ years of operation and over 90% of their EPC projects delivered on time and under budget.

[Andy Robinson, President, COO, and Director at Standard Lithium]

They have a strong regional presence and will be supported by Hatch, who brings important experience designing and commissioning DLE lithium projects. S&B's scope covers the full processing chain at the central processing facility, including everything related to receipt of the brine from the well field, direct lithium extraction, and ultimate conversion to battery quality lithium carbonate. Both construction agreements include a limited notice to proceed that we have already been taking advantage of. It allows us to continue to progress key work in the lead up to FID, including detailed engineering, procurement, planning, and vendor engagement. We will continue to de-risk execution and optimize the construction schedule so we can transition to full notices to proceed and begin construction promptly following a positive FID.

[Andy Robinson, President, COO, and Director at Standard Lithium]

We were able to put these contracts in place as a result of the extensive project definition that had already been completed by the team through approximately 18 months of detailed front-end engineering design work that culminated in our definitive feasibility study. We believe our construction partnerships give us a highly experienced and capable execution team with the safety culture, regional footprint, and technical depth required for a project of this scale. Turning to customer offtake and project financing, these are the two key remaining deliverables before we take FID. As previously discussed, the SWA project is designed for 22,500 tons per year of battery quality lithium carbonate. We are targeting approximately 80% of that production to be under long-term offtake agreements. Our existing 10-year agreement with Trafigura covers 8,000 tons annually and represents over 40% of our target contracted volumes.

[Andy Robinson, President, COO, and Director at Standard Lithium]

The partnership remains in very advanced discussions with several prospective customers and aims to finalize all remaining offtake agreements in the third quarter. We are focused on reaching agreements on the best possible terms to support our project financing efforts and are highly confident in our ability to reach a positive outcome in these important negotiations. Conclusion of these offtake efforts will help to finalize the size and structure of the SWA project debt, where due diligence and other customary underwriting processes are well underway and this work stream continues to progress in parallel with the offtake process. Before I hand it over to Salah, I just want to touch on East Texas. We plan to release a preliminary economic assessment for the Franklin project in the third quarter of this year.

[Andy Robinson, President, COO, and Director at Standard Lithium]

This will build on the sizable maiden inferred resource that released almost a year ago that highlighted the highest reported lithium and brine grades in North America. This PEA will provide a first look at what we believe to be a globally significant project, extremely attractive project economics, and a clearer framework for the next stage of development. We believe this is the next important step in gaining recognition and more appropriate valuation for East Texas as a core part of our asset portfolio. We will continue to work on maiden inferred resource reports for our other potential projects in the area, all while continuing to expand our leasehold footprint in East Texas. We are quite pleased with all the progress made during the second quarter. Two of the four principal pre-FID deliverables are complete and the remaining two are advancing well.

[Andy Robinson, President, COO, and Director at Standard Lithium]

The project remains positioned for FID and the start of construction later this year. Now I will turn it over to Salah to discuss our financial results and project financing.

[Salah Gamoudi, CFO at Standard Lithium]

Thank you, Andy. For the second quarter ended June 30th, 2026, we reported a net loss of $3.1 million as compared to a net loss of $5 million for the quarter ended June 30th, 2025. When comparing the quarter ended June 30th, 2026 to the quarter ended June 30th, 2025, G&A increased by $0.7 million, while demonstration plant costs increased by $0.3 million. The higher G&A is primarily driven by growth in employee headcount and activity to support the advancement of our portfolio of projects, including preparation of a final investment decision at SWA, partially offset by cost savings and certain audit, legal, and consulting expenses. The demo plant increase was driven by higher personnel and supply costs associated with ongoing R&D activities to help support training of future operators at SWA, potential future improvements to our process flow sheet, along with other maintenance and site improvement work.

[Salah Gamoudi, CFO at Standard Lithium]

What we do at the demo plant has been a real differentiator for us through all phases of our project development. Additionally, we incurred a non-cash foreign exchange gain of $2.7 million during the quarter. This FX gain was due to having significantly higher average U.S. dollar cash balances as a result of our $130 million follow-on offering in October of last year, as well as fluctuations in exchange rates between U.S. and Canadian dollar and the resultant non-cash accounting impact on those cash balances held by one of our Canadian dollar functional currency entities. Below operating expenses, we recorded a slightly higher investment loss from joint ventures of $1.5 million for the quarter versus $1.3 million in the prior period.

[Salah Gamoudi, CFO at Standard Lithium]

This increase reflects expanded operational activity at the Smackover Lithium partnership level in connection with commercial and financing initiatives, as well as increased corporate and administrative support as project development activities progress towards FID at SWA, and we continue expansion of our leasehold footprint, resource, and economic definition activities in East Texas. We also recognized approximately $800,000 in additional interest income period-over-period, driven primarily by higher average cash balances. Moving on to the balance sheet. We ended the quarter with strong cash and working capital positions of $137.3 million and $137.1 million respectively. We remain focused on maintaining a strong liquidity position in addition to disciplined capital allocation and cost management. Standard Lithium made JV capital contributions of $9.4 million during the second quarter, of which $5.5 million and $3.9 million went towards SWA and East Texas respectively.

[Salah Gamoudi, CFO at Standard Lithium]

This brings total year-to-date JV capital contributions to $27.2 million. For Southwest Arkansas, the contributions allow us to continue to advance key project milestones and technical and engineering work streams ahead of FID. For East Texas, the contribution is primarily to continue advancing resource and economic definition, expanding our leasehold footprint, and preparing a preliminary economic assessment for the Franklin project with further reports across our portfolio to follow. Securing an attractive and comprehensive project finance package is critical for a final investment decision at SWA. An approximate $1.5 billion of base project CapEx per our DFS, in addition to potential cost overrun facilities, reserve accounts, or other incremental capital requirements, are expected to be financed by a combination of senior secured project debt, our $225 million grant from the DOE, potential further alternative non-dilutive funding sources, as well as respective funding contributions from Standard Lithium and Equinor.

[Salah Gamoudi, CFO at Standard Lithium]

The joint venture is targeting approximately $1.1 billion total in senior secured limited recourse project debt, supported by three leading major Export Credit Agencies, the Export-Import Bank of the United States, Export Development Canada, and Export Finance Norway, along with a strong syndicate of commercial banks. The equity contribution required by Standard Lithium will be supported by the proceeds from our equity raise last year. Any cost overrun facilities, contingencies, minimum working capital balances, or reserve accounts over and above base project CapEx requirements remain subject to negotiation with the lenders, with quantums to be determined.

[Salah Gamoudi, CFO at Standard Lithium]

While we await the conclusion of our remaining commercial offtake agreements, which will play a significant role in determining the ultimate size and structure of the SWA project debt, we continue to progress important project financing work in the interim around due diligence, structuring and documentation, credit and other approvals such that we are in a position to reach financial close and draw down shortly thereafter. In other words, the offtake process has not and will not hold up advancement of the project financing work stream. We are in the advanced stages of diligence on this effort, and we remain on our targeted timelines. With that, I will now turn it back over to David for closing remarks.

[David Park, CEO and Director at Standard Lithium]

Thanks, Salah. We saw real tangible results in the second quarter as we converted multiple years of technical, environmental, and engineering work into the completion of pre-construction milestones. We concluded the federal environmental review under NEPA with a FONSI and a clear green light to proceed. We selected and contracted with key construction partners who will lead us confidently through project execution. We continue to steadily advance the commercial and financing processes as the two final primary deliverables required before taking FID. Our team, together with Equinor and our advisors, remains focused on completing the remaining work with discipline and on terms that support the long-term value of the project. Our expectation remains to approve FID and begin construction at Southwest Arkansas later this year, with first commercial production targeted for 2029.

[David Park, CEO and Director at Standard Lithium]

You should expect to hear frequently from us in the coming months as we conclude all remaining work and progress against our timelines. Standard Lithium continues to be extremely well-positioned, poised for growth with a portfolio of high quality and scalable assets, including in East Texas, to be a leading domestic critical minerals producer in the U.S. Thank you again for joining us today. Operator, I'll turn it back to you.

[Operator]

We will now begin the question and answer session. If you would like to ask a question, please press star one to raise your hand. To withdraw your question, press star one again. We ask that you pick up your handset when asking a question to allow for optimum sound quality. If you are muted locally, please remember to unmute your device. Please stand by while we compile the Q&A roster. Your first question comes from the line of Max Yerrill with BMO Capital Markets. Your line is now open. Please go ahead.

[Max Yerrill, Analyst at BMO Capital Markets]

Hey, guys. Thanks for taking my question. On the debt financing piece, is there any color you can share on which parts of the due diligence the lenders are working through, and maybe which parts have been completed and how this is tracking maybe relative to your expectations? Thanks.

[David Park, CEO and Director at Standard Lithium]

Thanks, Max. First, I'll say there are a number of work streams that the Export Credit Agencies are pursuing in parallel. Technical diligence, including site visits, environmental due diligence, financial due diligence, insurance-related due diligence. There are multiple work streams that have been pursued in parallel. I think there continues to be Q&A along all of them. However, no material red flags have been raised, no material concerns have been raised. Diligence continues to proceed. We should be coming near the end of that diligence period. That diligence then supports commercial negotiations around specific terms and conditions, and some of those negotiations are happening in parallel as well.

[Max Yerrill, Analyst at BMO Capital Markets]

Thanks, David. That's helpful color. I'll turn it back.

[Operator]

Your next question comes from the line of Theo Genzebu with Raymond James. Your line is now open. Please go ahead.

[Theo Genzebu, Analyst at Raymond James]

Yeah, great. Thanks for taking my call today, guys. Just on the offtake, you reiterated the expectation to finalize them by 3Q, and you've indicated that you have a pretty good sense of the counterparties and volumes, durations, and pricing mechanisms. But can you just help us understand what the remaining gating items are today? Are they primarily commercial terms, final credit approvals, or documentation, or something else?

[David Park, CEO and Director at Standard Lithium]

Sure. Great question. I'll first restate that we have the utmost confidence that we'll be able to bring offtake agreements to the table and announce prior to the end of the quarter. They may take the form of one additional offtake agreement or potentially two. I would say the agreements have been heavily negotiated in parallel, so there are multiple parties we are talking to at this point in time. But that gives us a lot of confidence that by the end of the quarter, we will have offtake announcements that we can tell you are FID-able. Yeah, I think that's probably the best I can do in answering your questions without getting into too much confidential detail on the nature of those discussions.

[Theo Genzebu, Analyst at Raymond James]

Okay. Yeah, no, that's great. Great color on that, so appreciate that. Okay, and then just looking at both construction contracts are in place with the limited notices to proceed. Can you give us a sense of what work is actively advancing pre-FID, and how much schedule benefit those could provide once you issue the full notices to proceed?

[David Park, CEO and Director at Standard Lithium]

Andy, can you take that one?

[Andy Robinson, President, COO, and Director at Standard Lithium]

Yeah, sure. Hey, Theo. The work that is happening right now from the two contractors, whether it is S&B and Hatch on the CPF contract, which is an EPCC contract, or Wood on the EPCM for the Well field. The work that is going on right now is full confirmation of the feed design, the design assumptions, integrating that into a full holistic schedule with key deliverables, key milestones set up internally so that we have a fully integrated schedule between the two main contracted groups and obviously us as the owners. That is one of the first items. Second is detailed design on key components of the work. Third, which is really important, is vendor outreach.

[Andy Robinson, President, COO, and Director at Standard Lithium]

Fact-checking some of the key vendor packages which might sit on the critical path for the project, talking to some of the key vendors, ground truthing some of the design assumptions, etc., and really just getting a feel for who the actual vendor packages are going to go out to once we take full FNTP for the contractors, Theo. We are doing all of this work basically to ensure that the schedule which has been agreed in the two sets of contracts in the EPCC and the EPCM makes sense, they can adhere to, and that the vendors who are going to form a key part of the delivery are fully up to speed of expected vendor package delivery dates, etc.

[Andy Robinson, President, COO, and Director at Standard Lithium]

It really is a holistic exercise right now, Theo, to make sure that we are on top of cost, on top of schedule, and that the full project execution team is getting familiar. The working groups are getting set up. All the kickoff meetings have been held, and the full integrated delivery team is getting fully up to speed. Once we take FID, it really is a seamless transition straight into construction. Hope that is helpful.

[Theo Genzebu, Analyst at Raymond James]

That's great. Yeah, definitely look forward to seeing that roll out. So appreciate your time today, and I'll hand it back.

[Operator]

Just a reminder that if you'd like to ask a question, please press star one. If you'd like to withdraw your question, again, press star one. Your next question comes from the line of Joseph Reagor with ROTH Capital Partners. Your line is now open. Please go ahead.

[Joseph Reagor, Analyst at ROTH Capital Partners]

Hey, guys. Thanks for taking the questions. I guess first, just following on all this conversation about financing and offtakes. If you guys think back six, 12 months ago, where you were hoping to be by now, do you feel like everything's still on the same schedule? Has there been any slowdowns or anything that's actually sped up, since we can't really see with everything that's going on behind the scenes?

[David Park, CEO and Director at Standard Lithium]

Thanks, Joe. I think the most candid way of answering that is earlier in the year, we were hopeful that we would be in a spot to FID by the end of the second quarter. We're clearly not there. For at least a quarter now, we have been signaling end of year FID, and we think we're very much on track for that. So, with that revised schedule in mind, we think we are tracking well with respect to offtake and project finance to be able to hit that date.

[Joseph Reagor, Analyst at ROTH Capital Partners]

Okay. That's helpful. Then as you guys look forward to the PEA for East Texas, we're assuming it looks good, how fast do you think you can advance that project from, say, PEA? Would you guys go through the full process, PFS, feasibility study, or would you jump over straight to feasibility study? What's a reasonable number of years between PEA and potential financing and building?

[David Park, CEO and Director at Standard Lithium]

Andy, why don't you take that one?

[Andy Robinson, President, COO, and Director at Standard Lithium]

Yeah, sure. No, thanks for the question, Joe. Obviously, one of the great advantages is we're not seeking, I think as we've publicly disclosed before, there's a high degree of homogeneity in the brine resources in general from where we are in Southwest Arkansas and East Texas, and you'll see more of that obviously in the PEA once that's out. What that means is that we don't need to fully reinvent the wheel every time we move to a new project, Joe. There's a certain efficiency that we will gain as we move from project to project. Again, hoping to continue to use the same execution teams, the same basic flow sheet, etc.

[Andy Robinson, President, COO, and Director at Standard Lithium]

I guess without giving you a specific number, I think we expect to see some efficiencies in our project definition process going from this PEA to moving towards an FID for the East Texas projects in sequence. It's going to be, I suspect, shorter than what we've seen through the multiple definition steps for SWA, right? It's going to be a more efficient process. That said, they're pretty large projects, so there's some additional scale. I think as we've talked about before, our general footprint in East Texas is large. The Franklin project and the maiden inferred resource that came out last year, you sort of saw a sense of the scale of that first of the Texas projects. As we think about execution, there's both scale to consider as well as kind of a simplified flow sheet.

[Andy Robinson, President, COO, and Director at Standard Lithium]

We expect to see a general efficiency, a general shortening. We may skip one step in that definition, but it will follow, I think, as efficient a timeline as we can hope to achieve in the normal context of getting the necessary capital, moving the project to FID, etc.

[Joseph Reagor, Analyst at ROTH Capital Partners]

Okay. All right. That's helpful too. One last thing, if I could. As you have gone through the financing due diligence process, has there been any specific pushback around either brine quality or the pretreatment side of the business? I know that there's been some commentary out there from some of your competitors about cleanliness of the brine, day one, number of impurities, that kind of stuff. Has there been any pushback from your finance people on that?

[David Park, CEO and Director at Standard Lithium]

Andy, I'll let you take that one as well.

[Andy Robinson, President, COO, and Director at Standard Lithium]

Yeah, sure. In simple terms, no, Joe. But the reason for that is because of demonstration plant. The fact that we can take people around. Obviously, we've taken the ECAs, the lenders, all of their advisors around the demonstration plant. They've seen us processing 60-90 gal a minute on a continuous basis from raw brine right the way through to battery quality carbonate at the demo plant, the full flow sheet. I think they've got very comfortable with how well proven, how well de-risked that is. I think, again, as we've been fairly candid in the past, Joe, it took us some years to figure out some of the pretreatment aspects of the Smackover brines. But because we operated that demo plant now, we've been running it for six years, 24/7, 365 days a year, using real brine.

[Andy Robinson, President, COO, and Director at Standard Lithium]

We've been able to iron out our kinks for our brine assets to a very high level of confidence. That's why we're ready to take this project commercial and why the lenders are certainly currently very comfortable with where we are in the de-risking stage.

[Joseph Reagor, Analyst at ROTH Capital Partners]

Okay. I just had to ask. Appreciate the color on everything, and I'll turn it over.

[Operator]

Your next question comes from the line of Noel Parks with Tuohy Brothers Investment Research. Your line is now open. Please go ahead.

[Noel Parks, Analyst at Tuohy Brothers Investment Research]

Hi, good afternoon. Apologize if you touched on this already. I got on a little bit late. I wonder, could you talk a little bit about the status of your most recent technical work in East Texas? Progress on the requirements for delineation, etc. Have there been any surprises or either positive or negative, or any new thinking you have as you continue with your analysis?

[David Park, CEO and Director at Standard Lithium]

Andy, I'll turn this one to you as well.

[Andy Robinson, President, COO, and Director at Standard Lithium]

Okay. Thanks, Noel. The work that we've been doing over the last period since we put out the maiden inferred resource for the Franklin project has really been reentry back into the three wells that we drilled a couple of years ago. We went back into those, resampling the brines in a more detailed way. We have done a whole suite of reservoir testing in the Smackover, across that project footprint. That really forms the basis of what's going to be going into the PEA, so really getting an understanding of the reservoir productivity in the project area. At the same time, we've obviously been doing a lot of additional test work to ensure that the flow sheet works with the concentration, the higher concentration of the East Texas brines. That's been going on in the background as well.

[Andy Robinson, President, COO, and Director at Standard Lithium]

We're looking forward to getting that PEA out there. I think it's going to be a chance for you guys to get a feel for what we're really talking about within that jurisdiction. We think it's going to be pretty important for us. There's going to be obviously continued test work. But as I sort of mentioned to Joe on the previous question, we're very fortunate that we don't have to start from scratch in any of this. It's always just for the subsurface team. It's another level of understanding from what we already know here in Southwest Arkansas, so it's adding to the team knowledge. Similarly, on the process flow sheet, it really is sort of incremental improvements based on what we've been doing for the last several years anyway.

[Andy Robinson, President, COO, and Director at Standard Lithium]

It is optimization, trying to make things, in very simple terms, cheaper and easier to build and operate is always the goal. That's very much the spirit as we kind of continue all of that technical definition work on the Franklin project. Then obviously we've got other projects within East Texas as well that we continue to advance all of the leasing and kind of technical definition work on as well. There's a lot of work happening in the background, Noel.

[Noel Parks, Analyst at Tuohy Brothers Investment Research]

Great. Thanks. I had a question sort of more broadly, I guess, about lithium macro. Clearly you had discussions in progress with potential counterparties off-takers for some time. I guess a couple of things. Are there very similar outlooks among the different parties, similar to yours at Standard Lithium, around sort of longer term pricing dynamics? For lithium, I guess I'm thinking about compared to a few years ago, let's say five years ago, the market globally is less opaque than it was. I just sort of wondering, I don't know, just your thoughts on sort of visibility into the market, especially for the longer term.

[David Park, CEO and Director at Standard Lithium]

Sure. I'll try and address that one. First, I'll say there's been a lot of dialogue with off-takers and potential off-takers with respect to market conditions. It's clear that there's very strong demand for a battery-grade lithium carbonate in the 2029 and beyond market window. I think based off where we are in discussions with different counterparties, there is a general belief and a band in which lithium is likely to trade. I think there's enough of a meeting of the minds on how prices are set and where prices are likely to be that we're able to get to off-take agreements, in the timeframe that we're talking to you about. There are indices out there that we have agreement on how we'll use and there's a fair amount of discussion of what the range and where pricing may be go forward.

[David Park, CEO and Director at Standard Lithium]

It's supportive of the work you would've seen from our feasibility studies we put out as well.

[Noel Parks, Analyst at Tuohy Brothers Investment Research]

Great. Thanks a lot.

[Operator]

There are no further questions at this time. This concludes today's call. Thank you for attending. You may now disconnect

Participants

Executives

• Daniel Rosen, VP of Investor Relations and Strategy
• David Park, CEO and Director
• Andy Robinson, President, COO, and Director
• Salah Gamoudi, CFO

Analysts

• Max Yerrill, Analyst at BMO Capital Markets
• Theo Genzebu, Analyst at Raymond James
• Joseph Reagor, Analyst at ROTH Capital Partners
• Noel Parks, Analyst at Tuohy Brothers Investment Research