Texas Turns Oil Waste to White Gold in U.S. Supply Chain Push

MIDLAND, TX – February 06, 2026 – In the heart of America's oil country, a new kind of resource boom is underway. Fort Worth-based Element3 today announced the launch of commercial-scale lithium carbonate production at its new Midland facility, a milestone that marks the first new domestic lithium mining project to come to market in over half a century. The company is not digging into the earth for new minerals but is instead tapping a vast, overlooked resource: the billions of gallons of wastewater produced daily by the Permian Basin's oil and gas industry.

The ribbon-cutting ceremony, attended by state and federal dignitaries, celebrated the launch of a 3,000 ton-per-annum facility that represents a pivotal shift in resource strategy. By transforming an industrial byproduct into a critical component for electric vehicles, advanced manufacturing, and national defense, Element3 is positioning Texas at the forefront of a national push to secure domestic supply chains.

"Texas is America's undisputed energy leader," said Governor Greg Abbott at the ceremony. "Element3's plan is the epitome of quintessential Texas ingenuity, building the first lithium carbonate production plant from oilfield waste right here in the United States. Texas is bigger, stronger, and better because of Element3."

This development signals more than just a new industrial facility; it represents a potential blueprint for how legacy energy regions can pivot to power the future, turning what was once considered waste into the building blocks of a new energy economy.

A New Era for the Permian Basin

For decades, the Permian Basin's identity has been inextricably linked to oil and gas. The region's vast output has powered the nation and shaped global energy markets. Now, Element3 is demonstrating that the basin's existing infrastructure can be repurposed to serve the next generation of energy needs, diversifying the local economy and creating hundreds of high-paying jobs.

The company’s strategy hinges on the immense volume of produced water—a saline brine that comes to the surface during oil and gas extraction. The Permian Basin generates roughly a billion gallons of this water daily, a stream that has long been viewed as a costly disposal challenge. Element3's proprietary technology, however, sees it as a valuable feedstock.

By co-locating its first extraction plant at a recycling facility owned by a subsidiary of Double Eagle Energy Holdings, Element3 is embedding itself directly into the existing oilfield ecosystem. This strategic partnership allows the company to secure a steady supply of lithium-rich brine without drilling new wells or building extensive new pipeline networks. It's a model that dramatically accelerates the path to commercialization, allowing Element3 to begin shipping its first products to customers this quarter, years ahead of traditional mining projects that face lengthy permitting and construction timelines.

"Today, Element3 delivers the State of Texas and our country a major step toward securing the lithium supply chain that America needs for reindustrialization and national defense," said Hood Whitson, CEO of Element3.

Powering the Future: The National Lithium Imperative

The Midland facility's launch arrives at a critical moment for the United States. The Department of Energy has designated lithium a "critical material" for economic and national security, yet the nation remains dangerously dependent on foreign imports. In 2024, the U.S. produced less than 1% of the world's lithium, importing roughly 15,465 metric tons of lithium carbonate to meet its needs.

This supply-demand gap is set to widen dramatically. Driven by the exponential growth of electric vehicles—which are projected to account for nearly 90% of lithium consumption by 2025—and grid-scale energy storage, U.S. annual demand for lithium carbonate equivalent is forecast to hit nearly 700,000 metric tons by 2030. Current and planned domestic projects, even if all are successful, are not projected to meet this surge.

Element3's initial 3,000-ton capacity is a modest but vital contribution to closing this gap. It provides a proof-of-concept for a scalable domestic solution. The company has already announced plans for additional facilities throughout the Permian Basin, aiming to become a top-three domestic lithium producer within three years. This ambition aligns with a national strategy, supported by federal initiatives like the Inflation Reduction Act, to onshore the critical minerals supply chain and reduce reliance on geopolitical rivals.

The Technology of Transformation

At the core of Element3's operation is a proprietary technology known as direct lithium extraction (DLE). Building on foundational research licensed from the Oak Ridge National Laboratory, the company has developed and patented a process that can efficiently pull lithium directly from the complex brine of produced water. Field tests have shown recovery rates of over 85%, even from water with relatively low lithium concentrations.

This technological approach offers significant environmental advantages over conventional lithium extraction methods. Traditional hard-rock mining involves large open pits and significant land disruption, while conventional brine extraction requires vast, water-intensive evaporation ponds that can take years to yield a final product. DLE, by contrast, has a much smaller physical footprint and operates on a timescale of hours, not months.

Furthermore, Element3's process is entirely U.S.-developed and, critically, does not rely on Chinese-sourced sorbents, a key vulnerability for some other DLE technologies. While the process is energy-intensive, its supporters argue that it represents a far more sustainable path by valorizing an existing waste stream. The Texas Railroad Commission has recently updated its rules to clarify its jurisdiction over brine mining, creating a regulatory framework that facilitates this new industry while ensuring processed brines are safely managed.

A Crowded Field in a High-Stakes Race

Element3 is a key player, but it is not alone in the race to build a domestic lithium industry. A flurry of activity is underway across the country, utilizing a range of resources and technologies. In East Texas and Arkansas, oil giants like ExxonMobil are exploring the lithium-rich brines of the Smackover Formation. In California's Salton Sea, companies are developing methods to co-produce lithium and geothermal energy. Meanwhile, more traditional hard-rock and clay-based mining projects are advancing in Nevada and North Carolina.

Each approach has its own set of technical, economic, and environmental challenges. What sets the Permian Basin strategy apart is its unique ability to leverage a century of oil and gas expertise and infrastructure. By bolting its technology onto an existing, operational system, Element3 has created a model that prioritizes speed and scalability in a market where both are desperately needed. The successful launch in Midland is a testament to this strategy, marking a significant first step in the long journey to reshape America's energy and industrial landscape.