Texas-based Element3 has produced battery-grade lithium carbonate from oil and gas wastewater in the Permian’s Midland Basin during a second-generation field test, the company said.

The critical material company extracted wastewater from a Double Eagle Energy Holding IV subsidiary’s recycling facility and pulled the lithium from the wastewater at its field demonstration plant, Element3 said in a Feb. 6 news release.

“This is another milestone as we work toward utilizing oil and gas wastewater as an efficient and economical source of battery grade lithium materials, securing the U.S. supply chain,” said Element3 CEO Hood Whitson. “With our newly acquired lithium carbonate processing equipment, we are positioned to begin commercial production this year.”

The full-scale lithium carbonate plant will extract lithium from oil and gas wastewater, according to the release.

In January 2024, Element3 told Hart Energy the Fort Worth company successfully extracted lithium chloride from oil and gas wastewater in the Permian Basin with its direct lithium extraction technology. During that field test, Element3 set up a simple flow loop to move water from the water recycling facility to Element3’s plant. Test results showed the company recovered more than 85% of the lithium contained in wastewater with a concentration of less than 40 parts per million.