Stock Analysis

Standard Lithium (TSXV:SLI) Is Up 20.3% After Record Lithium-in-Brine Discovery at Franklin Project – Has The Bull Case Changed?

  • On September 24, 2025, Smackover Lithium, a joint venture between Standard Lithium and Equinor, announced a maiden inferred resource for the Franklin Project in East Texas, highlighting the highest reported lithium-in-brine grade in North America and substantial multi-mineral potential.
  • This milestone positions the project as a significant contributor to US lithium supply, supported by extensive resource volume and a critical minerals portfolio amid increasing government interest.
  • We'll now examine how Standard Lithium's progress in securing high-grade lithium resources could reshape its broader investment narrative.

AI is about to change healthcare. These 32 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10b in market cap - there's still time to get in early.

Advertisement

What Is Standard Lithium's Investment Narrative?

For investors considering Standard Lithium, the core belief is that the company will successfully transition from a pre-revenue developer to a significant domestic supplier of battery-grade lithium, buoyed by strategic partnerships and technological progress. The recent confirmation of North America's highest lithium-in-brine grades at the Franklin Project represents a material development, as it helps address the key short-term catalyst: resource validation that de-risks commercial plans and attracts further government and industry support. This news, combined with Standard Lithium’s expanding joint venture footprint and ongoing advances in extraction, provides new momentum even as the business remains unprofitable and reliant on future funding. Risks remain around execution, production scaling, and the company’s ability to turn resources into revenue, especially in light of fluctuating lithium markets and no immediate profit or cash flow. The uptick in share price indicates optimism, but investors should stay focused on milestones that could affect timelines and long-term value.

But with ambitions rising, the timeline to monetization remains a key point investors can’t ignore. Upon reviewing our latest valuation report, Standard Lithium's share price might be too optimistic.

Exploring Other Perspectives

TSXV:SLI Community Fair Values as at Oct 2025
TSXV:SLI Community Fair Values as at Oct 2025
Seven members of the Simply Wall St Community peg Standard Lithium’s fair value between US$0.51 and US$5.08 per share, highlighting a wide gulf in expectations. With near-term catalysts centered on scaled production and resource conversion, your own analysis may differ sharply, especially given how quickly decisive news can shift outlooks.

Explore 7 other fair value estimates on Standard Lithium - why the stock might be worth as much as CA$5.08!

Build Your Own Standard Lithium Narrative

Disagree with this assessment? Create your own narrative in under 3 minutes - extraordinary investment returns rarely come from following the herd.

Searching For A Fresh Perspective?

Opportunities like this don't last. These are today's most promising picks. Check them out now:

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

New: Manage All Your Stock Portfolios in One Place

We've created the ultimate portfolio companion for stock investors, and it's free.

• Connect an unlimited number of Portfolios and see your total in one currency
• Be alerted to new Warning Signs or Risks via email or mobile
• Track the Fair Value of your stocks

Try a Demo Portfolio for Free

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com