New Lithium Operation Opens In America For The First Time Since The '60s

As of this writing, the United States has only one operational lithium mine, the Silver Peak Lithium Mine in Nevada, which opened in the 1960s. No new mine has gone into operation since Silver Peak, but a new process of lithium extraction offers a new means of obtaining the valuable metal. The U.S. Department of Energy (DoE) and Element3 launched the first domestic lithium extraction operation since the Silver Peak Lithium Mine opened; Element3, a Texas-based company, reached an important milestone in February 2026 via the DoE's Minerals to Materials Supply Chain Research Facility (METALLIC) in lithium extraction.

Instead of launching a new mining operation, Element3 has perfected a new process to extract lithium from the wastewater derived from oil production in the Permian Basin , which is located in Southwest Texas and Southeast New Mexico. Element3 received the licenses for seven Oak Ridge National Laboratory (ORNL) inventions dealing with lithium extraction in 2024, and is now moving forward with operational extraction. This marks the first time a new lithium-producing operation has launched in the U.S. since the '60s, and may significantly increase lithium production in the nation.

Lithium is an important factor in our day-to-day lives, as the element is vital in a number of electronics and batteries. If you're reading this article on your tablet or something like the iPhone 18 Pro, there's a good chance you're holding a lithium-ion battery at this moment. So, for modern life to function, lithium is a vital resource; the U.S. imports around 3,800 metric tons of lithium it needs as unrefined compounds each year, while exporting around 2,000 tons.

During oil production, water is used for various purposes, including drilling lubrication, cooling, waterflooding, and fracking. It's often mixed with crude oil to remove corrosive elements, and through these processes, wastewater picks up all kinds of elements; water also plays a big role in oil extraction. Element3's process selectively extracts lithium from produced water, which is naturally occurring water extracted alongside oil and natural gas. Using the technology developed at ORNL, Element3 removes the element as lithium chloride (LiCl), then converts it into lithium carbonate (Li₂CO₃) powder and lithium hydroxide (liOH).

Once it's in this state, the lithium is in battery-grade form and can be used to manufacture numerous batteries, including those made to power electric vehicles. ORNL's Parans Paranthaman (pictured, left), who leads the Extractions and Separations Center at METALLIC, said of the process, "The feedstock contains all kinds of elements, so you need to selectively extract the element of interest with high efficiency and low cost as you scale up." The company's lithium extraction plant opened in Midland, Texas on February 6, 2026, and is already producing lithium.

The facility has the capacity to produce 3,000 tons of lithium per year, which is almost half of the United States' current production level. Previously, lithium processing had been conducted outside the U.S., where it was cheaper due to fewer environmental protections. Now, lithium extraction is happening in the U.S., and the Midland operation is producing lithium hydroxide and lithium carbonate, both of which are needed for a variety of electronics and lithium batteries (which are different from alkaline batteries). Everything is handled with a domestic supply chain, securing the strategic and commercial element for years to come.