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Freedom251 › Blog › critical minerals

New U.S. Lithium Operation Opens in Texas, First New Producer Since the 1960s

By Freedom251 Team · · 5 min read

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Element3 and the U.S. Department of Energy have launched a lithium-extraction facility in Midland, Texas, using oil-and-gas wastewater from the Permian Basin. It is being described as the first new U.S. lithium-producing operation since Nevada’s Silver Peak facility opened in the 1960s—but it is a wastewater-processing plant, not a conventional mine.

What opened in Midland, Texas

The new operation is designed to recover lithium from produced water, the water that comes to the surface during oil and gas production. Element3 developed the facility with technology originating at Oak Ridge National Laboratory (ORNL), while the U.S. Department of Energy (DOE) supported the broader produced-water and critical-minerals effort.

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SlashGear reported that the facility opened on February 6, 2026, and listed a planned capacity of 3,000 tons of lithium per year. Those figures have not been independently confirmed on the official ORNL pages that describe the project, so they should be treated as reported capacity and opening-date figures rather than audited production results.

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ORNL independently confirms that Element3 has a new lithium-extraction facility in Midland and that its process targets oil-and-gas wastewater.

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Why “the first since the ’60s” needs context

The comparison refers to a new domestic lithium-producing operation after Nevada’s Silver Peak Lithium Mine opened in the 1960s. It does not mean that every U.S. lithium project, exploration program or processing activity stopped for the intervening decades. The distinction matters because Midland is a new extraction and processing operation based on a waste stream, not a newly opened hard-rock mine.

Calling it a mine can give the wrong impression. The facility does not excavate a lithium-bearing ore body. Instead, it takes water already produced by oil and gas wells, separates dissolved lithium and other constituents, and prepares lithium compounds for industrial use.

How lithium is recovered from oilfield wastewater

1. Produced water is collected

Produced water rises with oil or gas from a well. DOE says this water can contain mineral salts, organic compounds, heavy metals, naturally occurring radioactive materials and other minerals. Because it is chemically complex, operators commonly dispose of it through deep underground injection wells.

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2. The water is characterized and treated

Before valuable minerals can be recovered, the stream must be analyzed and conditioned. Treatment is needed to manage the other dissolved and suspended materials that could interfere with separation or damage equipment.

3. Direct lithium extraction separates lithium

The licensed ORNL technology package covers membrane extraction and separation methods. ORNL says the package contains seven inventions spanning the direct-lithium-extraction process. Unlike evaporation-based approaches that concentrate brine over long periods, direct extraction uses engineered separation steps to selectively remove lithium from the water stream.

4. Lithium compounds are produced

The originating report describes lithium being removed as lithium chloride and then converted into lithium carbonate and lithium hydroxide. Those product-conversion details come from the secondary report; ORNL’s public descriptions establish the licensed direct-extraction technology and the produced-water feedstock.

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What the facility is intended to supply

Battery manufacturers need refined lithium chemicals, not just lithium-bearing water. Lithium carbonate and lithium hydroxide are established chemical forms used in battery supply chains, while lithium chloride is an intermediate in the reported Midland process.

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ORNL Corporate Fellow Parans Paranthaman said, “Less than 2% of our lithium comes from the U.S. and Canada, while the demand for lithium batteries for electric cars continues to grow.” ORNL projected in 2024 that the worldwide lithium-battery market could grow by a factor of five to 10 over the following decade.

ORNL Associate Laboratory Director Cynthia Jenks said, “It is critically important to the United States economy and national security that domestic sources for lithium — both raw and refined — are developed.”

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Project facts and what is not yet verified

Item What is established
Location Midland, Texas, in the Permian Basin
Operators and partners Element3 and the U.S. Department of Energy, with technology from Oak Ridge National Laboratory
Feedstock Oil-and-gas produced water
Technology Direct lithium extraction using a package of seven ORNL inventions licensed to Element3 in 2024
Reported opening date February 6, 2026, according to SlashGear
Reported capacity 3,000 tons of lithium per year, according to SlashGear; not independently confirmed on the official ORNL pages reviewed
Reported product route Lithium chloride converted to lithium carbonate and lithium hydroxide, according to the originating secondary report

How it differs from other lithium projects

Project type Feedstock Primary method Midland comparison
Midland Element3 facility Oilfield produced water Direct extraction and membrane separation Recovers lithium from an existing wastewater stream
Conventional brine operation Salar or other naturally occurring brine Brine concentration, commonly through evaporation and subsequent processing Uses a different feedstock and extraction pathway
Hard-rock operation Lithium-bearing ore Mining followed by crushing, chemical processing and refining Requires an ore body rather than produced water

The available project descriptions do not establish a like-for-like cost, lifecycle-emissions, water-use or lithium-recovery-rate comparison among these approaches. Those metrics should not be inferred from the Midland announcement.

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Why produced-water recovery matters

Recovering lithium from produced water could turn part of an oil-and-gas waste stream into a source of a critical mineral. DOE says produced water can be reused after it is properly characterized and treated, rather than sent directly to disposal. The same treatment effort may also help manage contaminants that otherwise require handling as waste.

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DOE said in 2023 that approximately $27 million had been invested in produced-water-management research and development since January 2021, including an $18 million funding opportunity. That program context helps explain why produced water is being evaluated as more than a disposal problem.

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Will this make the United States independent of imported lithium?

No single facility can eliminate import dependence. The project is strategically significant because ORNL’s 2024 statement put U.S. and Canadian contributions at less than 2% of lithium supply, but the Midland plant’s reported 3,000-ton annual capacity has not been independently audited in the official material cited here. Actual impact will depend on sustained production, the quality and volume of available produced water, downstream refining, battery-grade qualification and the construction of additional domestic capacity.

The immediate significance is narrower and concrete: Midland adds a domestic route for extracting and processing lithium from wastewater, applies federally developed separation technology in a commercial setting and demonstrates an alternative to relying only on imported material, salar brines or newly mined ore.

What to watch next

  • Whether Element3 publishes measured production and recovery data rather than nameplate capacity alone.
  • How consistently the process handles the salts, organics, heavy metals and naturally occurring radioactive materials present in produced water.
  • Whether the reported lithium chloride-to-carbonate and hydroxide conversion route produces battery-qualified material at commercial scale.
  • Whether similar facilities can be deployed near other oil and gas fields without creating new disposal or water-management problems.

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critical mineralsDepartment of Energydirect lithium extractionElement3lithiumOak Ridge National LaboratoryPermian Basin

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