Fort Worth startup Element3 is gearing up for what company leaders and local reporting describe as the first new domestic lithium mining project in decades, aiming to turn oil-and-gas produced water from the Permian Basin into battery-grade lithium carbonate at a Midland processing plant. The firm plans to install commercial extraction modules in the first quarter of 2026 and says it will move toward small-scale shipments soon after.
As reported by Fort Worth Star-Telegram, Element3 says the project will pull lithium-bearing produced water from Double Eagle recycling sites and convert it into lithium carbonate at a processing line south of Midland. In a company news release, Element3 said the milestone follows field tests that produced battery-grade material and positions the company for commercial production. “This is another milestone as we work toward utilizing oil and gas wastewater,” CEO Hood Whitson said in the release.
How Element3 Plans To Pull Lithium From Oilfield Water
Element3 is using a patent-pending direct lithium extraction (DLE) process that, according to industry coverage in Hart Energy, can recover a high share of lithium from low-concentration produced water without energy-intensive evaporation. Local reporting in Midland Reporter-Telegram notes that Element3 has moved from pilot tests to a larger demonstration phase and expects an initial processing capacity near 2,000 tons per year at the Midland plant.
Why The Permian Matters
The Permian Basin already produces enormous volumes of produced water. A 2022 assessment put the total at roughly 3.9 billion barrels, about 168 billion gallons, a year, which could be a vast feedstock for lithium extraction if it can be treated and processed economically. As the U.S. Geological Survey explains, produced water can be highly saline and chemically complex, so projects have to balance extraction goals with treatment, disposal and monitoring obligations.
Not The Only Player, And Not Without Controversy
Element3’s announcement lands amid a flurry of Permian activity. The Midland Reporter-Telegram also reported that LibertyStream has begun demonstration-scale lithium carbonate production in Reeves County, showing that end-to-end refining is possible. Element3, which closed a Series A round in 2025 to deploy extraction plants, argues that its modular field units and water-midstream partnerships will let it scale faster than conventional lithium mines and put domestic product on the market sooner, according to the company release.
Supporters say the Permian projects could bring hundreds of high-paying jobs and help reduce U.S. reliance on foreign lithium, but regulators and environmental groups warn that permitting, water handling and independent product verification will be key. State agencies have already tightened produced-water oversight in the region, and New Mexico recently moved to restrict discharges of treated produced water, so companies say third-party lab certification and offtake contracts will precede large commercial shipments.
