Lithium demand is projected to quadruple by 2035, but traditional mining projects are struggling to scale quickly enough to meet it.
That gap is driving investment in direct lithium extraction technologies capable of pulling the critical mineral from unconventional sources, including oilfield wastewater and geothermal brines.
Unlike conventional evaporation ponds, which can take 12 to 18 months to yield lithium, direct lithium extraction (DLE) technologies can separate lithium from brines in hours or days.
For oil and gas operators, the technology represents an opportunity to convert one of their largest waste streams into a secondary revenue source.
Wastewater produced from Pennsylvania’s Marcellus Shale operations alone could theoretically meet 38 to 40 per cent of US lithium demand.
The Permian Basin, meanwhile, generates approximately 22 million barrels of produced water every day. Paw Juul, chief operating officer at Lithium Harvest, has described the scale of opportunity as effectively limitless, though he stresses that significant capital investment remains the central obstacle.
Two primary methods currently dominate DLE deployment.
The first, solvent extraction, is a liquid-to-liquid process in which brine passes over a specialised organic solvent containing selective extractants that draw lithium away from other dissolved materials.
The organic phase is then scrubbed, stripped and regenerated for reuse.
The second method, ion adsorption, is a liquid-to-solid process in which lithium ions bind to selective solid sorbents, typically resin or aluminium or magnesium-based materials.
Once those materials reach capacity, fresh water or a mild chemical solution is used to desorb and concentrate the lithium for further refining.
A closely related process, ion exchange, follows a similar cycle but relies on a chemical reaction that swaps ions to maintain electrical balance, rather than relying on physical surface adhesion.
Ion adsorption currently leads in commercial deployment.
The United States’ first lithium extraction plant, operated by Element3 in the Permian Basin and opened in February, uses the method.
A second facility operated by Gradiant in the Marcellus Shale is expected to open later this year.
Membrane technology is emerging as a potential third pathway, with the capacity to reduce water consumption, land use and chemical inputs while achieving battery-grade purity. However, it remains at an early stage of development.
Major energy companies are positioning early.
Occidental Petroleum and a Berkshire Hathaway unit formed a joint venture in June 2024 to extract battery-grade lithium from geothermal brine in California.
Equinor holds a 45 per cent stake in two of Standard Lithium’s DLE projects in the Smackover Formation, and Chevron acquired leasehold positions in north-east Texas and south-west Arkansas in 2025.
Mining companies are also active, with Rio Tinto advancing DLE projects across Argentina and Codelco and SQM forming a joint venture to develop lithium in the Salar de Atacama through 2060.
Researchers point to a broader commercial logic beyond lithium alone.
Brines also contain magnesium, vanadium, strontium and, in some locations, gold and copper.
Treating produced water as a multi-mineral resource, rather than simply a disposal problem, is increasingly seen as the most viable path to long-term profitability.