The global shift toward electric vehicles and renewable energy storage has driven significant demand for lithium, the metal that powers modern battery technology. This need for a stable supply has turned attention to domestic sources across the United States. Texas, a state with a long history as an energy leader, is now exploring whether its subsurface resources can support this new transition. The state aims to leverage its existing infrastructure and expertise to become a major contributor to the North American lithium supply chain, focusing on unconventional geological formations.
Documenting Lithium Presence in Texas
Texas confirms the presence of lithium reserves, primarily contained within deep underground saline water, known as brine. The most promising geological area is the Smackover Formation, which extends through East Texas and into neighboring states. Exploratory drilling in East Texas has revealed lithium concentrations exceeding 800 milligrams per liter in some samples, characterized as among the highest recorded in North America. This high concentration, particularly in counties like Cass, Franklin, and Titus, makes the East Texas Smackover a prime target for development.
The brine is often a byproduct of the region’s oil and gas production, brought to the surface alongside hydrocarbons. Another area of interest is the massive Permian Basin in West Texas, which generates enormous volumes of produced water daily. While the lithium content is lower than in the Smackover, the sheer volume of produced water in the Permian Basin offers a different economic opportunity. Some companies are investigating Permian brines to add lithium extraction to their existing water management processes.
Deposit Types and Extraction Methods
Texas lithium deposits are predominantly found in subterranean brines, differentiating them from hard rock deposits or surface evaporation ponds used elsewhere. The Smackover brine is accessed by drilling wells, similar to traditional oil and gas operations, aligning with the state’s existing subsurface expertise. Therefore, conventional mining or large-scale solar evaporation ponds are not the primary methods pursued in Texas.
Commercial viability hinges on the successful application of Direct Lithium Extraction (DLE) technology. DLE uses specialized materials, such as selective adsorbents or ion-exchange membranes, to isolate and remove lithium ions from the brine. This method is designed to be more environmentally efficient and requires a much smaller surface footprint than traditional evaporation.
The DLE process allows the residual brine, after extraction, to be re-injected back into the geological formation. This closed-loop system is attractive for the highly saline Smackover and Permian brines. Companies are perfecting proprietary DLE technologies to demonstrate consistent, commercially viable production rates and high-purity output.
Commercial Development and Supply Chain Role
The transition from geological discovery to market commodity is well underway, with several commercial projects and major energy companies focused on Texas lithium. The state’s existing energy infrastructure provides a significant advantage, allowing new projects to leverage established drilling techniques, pipeline networks, and a highly skilled workforce from the oil and gas sector. This foundation accelerates development timelines and potentially reduces the capital requirements compared to greenfield projects in other regions.
One of the first commercial facilities utilizing produced water for lithium extraction broke ground in East Texas, in Shelby County, targeting production of high-purity lithium salts. This project, involving Select Water Solutions and Mariana Minerals, demonstrates the immediate application of DLE to the water byproduct of existing hydrocarbon operations. Similarly, companies like EnergyX are developing demonstration and commercial-scale refineries in the Texarkana region, with ambitious plans for substantial annual production by the end of the decade.
Major energy corporations, including Chevron and Halliburton, have acquired acreage and announced projects in the East Texas Smackover region. They are leveraging their deep knowledge of subsurface fluid management and reservoir engineering to tackle the technical challenges of DLE. Furthermore, federal support has been directed toward Texas-based refining projects, such as a large Department of Energy grant for a lithium refinery complex, underscoring the state’s role as a processing hub for domestic battery materials.
Texas is positioning itself not only as a source of raw lithium but also as a hub for the entire supply chain, from extraction to the production of battery-grade lithium carbonate and hydroxide. The goal is to integrate upstream brine production with downstream refining capabilities, creating a comprehensive ecosystem that supports the nearby automotive manufacturing centers. This strategic development leverages Texas’s logistical advantages and industrial base to establish it as a substantial contributor to America’s energy independence and the growing electric vehicle industry.