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Element3 and the U.S. Department of Energy have opened a lithium-extraction facility in Midland, Texas, that recovers lithium from oil-and-gas produced water in the Permian Basin. It is not a conventional open-pit or underground mine. The operation uses direct lithium extraction (DLE), with a reported capacity of 3,000 tons of lithium per year. That capacity and the February 6, 2026, opening date come from the originating report and have not been independently confirmed on the official Oak Ridge National Laboratory (ORNL) pages reviewed.

What opened in Midland

The new facility is a domestic lithium-producing operation built around a waste stream from oil and gas wells. Produced water is the water that returns to the surface with hydrocarbons. In the Permian Basin, that water is commonly managed as a disposal problem, but it can also contain lithium and other potentially valuable minerals.

A SlashGear report dated October 15, 2026, identifies the Midland operation as the first new U.S. lithium-producing operation since Nevada’s Silver Peak Lithium Mine opened in the 1960s. That comparison refers to a new domestic producing operation; it does not mean every U.S. lithium project, research program or processing activity stopped during the intervening decades. ORNL separately confirms that Element3 has a new Midland facility using oil-and-gas wastewater.

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Is it a mine or a wastewater plant?

It is best described as a wastewater-based lithium-extraction and processing facility, not a conventional hard-rock mine. No ore is excavated. Instead, the operation treats produced water, separates lithium from that fluid and prepares lithium compounds for battery-related supply chains.

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Characteristic Midland Element3 operation Conventional brine project Hard-rock project
Feedstock Oil-and-gas produced water Salar or other natural brine Lithium-bearing ore
Primary extraction approach Direct lithium extraction using licensed membrane and separation inventions Often evaporation and chemical processing Mining, crushing and refining
Water and waste context Starts with an oilfield wastewater stream that otherwise may be injected underground Water management depends on the brine reservoir and process design Generates mine and processing residues
Reported products Lithium chloride converted to lithium carbonate and lithium hydroxide Not stated for a like-for-like comparison Not stated for a like-for-like comparison
Cost, recovery rate and lifecycle emissions Not established in the cited material Not established in the cited material Not established in the cited material

How lithium is extracted from oilfield water

The project uses direct lithium extraction rather than waiting for water to evaporate naturally or mining solid rock. ORNL says the technology licensed to Element3 consists of seven inventions spanning the DLE process, including membrane extraction and separation methods.

  1. Collect produced water. Water brought up during oil and gas production is separated from the hydrocarbon stream and directed to treatment.
  2. Characterize and condition the water. The U.S. Department of Energy says produced water can contain mineral salts, organic compounds, heavy metals, naturally occurring radioactive materials and other minerals. Treatment must account for that chemistry before selective extraction.
  3. Capture lithium selectively. The licensed membrane-based system separates lithium from the much larger volume of water and from competing dissolved substances.
  4. Recover a lithium solution. The originating report says the process removes lithium as lithium chloride.
  5. Convert it to battery-supply-chain chemicals. The same report says lithium chloride is converted into lithium carbonate and lithium hydroxide. Those product-conversion details are reported descriptions of the Midland process, not independently audited production data.

Produced water is often sent to deep underground injection wells. DOE’s produced-water program notes that, after it is properly characterized and treated, the stream can be reused and can provide critical minerals such as lithium. DLE therefore combines mineral recovery with management of a difficult industrial wastewater stream, although the available sources do not establish the facility’s water-reuse rate or environmental performance.

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Why the operation matters to U.S. supply

ORNL Corporate Fellow Parans Paranthaman said in 2024 that less than 2% of U.S. and Canadian lithium supply came from those countries, while demand for lithium batteries for electric cars continued to grow. ORNL also projected that the worldwide lithium-battery market could expand by a factor of five to ten over the following decade.

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ORNL Associate Laboratory Director Cynthia Jenks called development of domestic sources for both raw and refined lithium important to the U.S. economy and national security. A facility that produces a refined lithium chemical in the United States could, in principle, reduce the distance between feedstock and battery-material customers. The Midland opening alone does not establish that imports will fall: its actual output, expansion plans, offtake contracts and performance over time have not been published in the cited official material.

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Capacity, opening date and what is verified

Item What is reported Qualification
Location Midland, Texas, in the Permian Basin Confirmed by ORNL and the originating report
Opening date February 6, 2026 Reported by SlashGear; not independently confirmed on the official ORNL pages reviewed
Annual capacity 3,000 tons of lithium per year Reported figure; not independently verified in the official sources reviewed
Technology owner and licensee ORNL inventions licensed to Element3 in 2024 ORNL describes seven inventions covering the DLE process
Feedstock Oil-and-gas produced water Confirmed by ORNL and DOE descriptions

“Capacity” is a design or stated production figure, not proof that the plant is already delivering 3,000 tons every year. Commercial output can depend on feedwater chemistry, operating uptime, permitting, downstream conversion and customer qualification.

Why a new operation took decades

The “since the ’60s” statement reflects the long gap between Silver Peak and this new type of domestic producing facility. Lithium development requires a viable resource, extraction technology, water and waste management, permits, capital and buyers for the resulting chemical products. Produced-water projects add another challenge: every oilfield has different water chemistry, and the stream may contain contaminants that require treatment before lithium separation.

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The sources do not attribute the entire gap to one cause, and they do not show that no U.S. lithium-related activity occurred during that period. The defensible point is narrower: the reported Midland opening is being presented as the first new U.S. lithium-producing operation after Silver Peak.

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Federal support behind produced-water research

DOE says approximately $27 million has been invested in produced-water management research and development since January 2021, including an $18 million funding opportunity. That work covers treatment, reuse and recovery of critical minerals, creating a technical base for projects such as Midland. Funding support does not guarantee commercial success, and the cited figures describe the broader R&D effort rather than the cost of constructing this facility.

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Does Midland make the U.S. independent of imported lithium?

No—not by itself. The operation adds a domestic source and demonstrates a route that uses an existing wastewater stream, but one plant cannot replace global supply chains. The reported 3,000-ton annual capacity has not been independently verified, and no source reviewed establishes the facility’s share of U.S. demand, realized production or long-term expansion. Its strategic importance is as a new domestic production and processing step in a market where ORNL said U.S. and Canadian sources supplied less than 2% of lithium in 2024.

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