Energy Analytics

Permian’s Potential Multibillion Dollar Bonanza: Direct Lithium Extraction

byGraham Bain

In North America, increasing demand for electric vehicles and energy storage systems is driving a need for a reliable and sustainable source of lithium. Direct lithium extraction (DLE) could help meet this demand by providing a domestic source of lithium, reducing the need for imports and improving energy security in the region. Additionally, by using a more sustainable extraction method, DLE could help to reduce the environmental impact of lithium production.

In a recent report, Enverus Intelligence Research (EIR) analysts explore the potential production of lithium from produced water in the Permian Basin.

While not yet commercially proven, DLE is a method of extracting lithium from brine without the need for large evaporative ponds or mines. This provides multiple advantages over traditional lithium production in North America, such as:

  • Lithium can be extracted more quickly as it does not require evaporation or the need to go through the entire mining process.
  • It is more environmentally sustainable than traditional methods. Without the need for mining or evaporation ponds, DLE nearly eliminates the chance to contaminate freshwater aquifers and entails a much smaller land footprint.
  • It does not need to clear the same legal and regulatory hurdles as new mines, which can take many years to commission.
  • It could be produced from oil and gas wastewater, offsetting the cost of dealing with the fluid.
  • It can use talent and infrastructure from the oil and gas industry, producing water from active oil and gas wells or from depleted legacy fields.

Recent changes to North American critical minerals policy incentivize local lithium production, with the Inflation Reduction Act implementing a stackable 10% tax credit on both mining and refining and the Defense Protection Act providing $1 billion per year to boost domestic mineral development. Canada has also joined the band with $3.8 billion allocated to projects in the form of infrastructure investments and tax credits.

If DLE can be proven commercial, there is an incredible opportunity for oil and gas producers to bolt on lithium processing for their wastewater, which all contains some concentration of lithium, with yearly production of lithium carbonate equivalent to more than 11,000 tons.

All formation water contains some concentration of lithium. Unconventional shale operators in the U.S. produce massive amounts of water, introducing the potential of an additional source of revenue for operators — if it can be extracted. Enverus analysts looked at several operators in Texas who have potential to produce lithium carbonate equivalent over their acreage from produced water. Source: Enverus Energy Transition Research.

Want to learn more about lithium, electric vehicles or how Enverus analysts can help you navigate the energy transition? Fill out the form below to speak with an Enverus expert.

Picture of Graham Bain

Graham Bain

Graham joined Enverus Intelligence® Research (EIR) in 2020 with the acquisition of RS Energy Group. As lead of the subsurface group on the Energy Transition Intelligence team, Graham creates intelligent connections between the subsurface, emerging energy and carbon innovation technologies through a deep understanding of geosciences and the energy transition. Prior to EIR, Graham worked as an analyst for the Alberta Energy Regulator with a focus on the Athabasca oil sands, and as a geologist in training for a Calgary-based exploration company.

Subscribe to the Enverus Blog

A weekly update on the latest “no-fluff” insight and analysis of the energy industry.

Related Content
Enverus Press Release - Renewable diesel: Too much of a good thing?
Analyst Takes Trading and Risk
ByAl Salazar, Enverus Intelligence® Research (EIR) Contributor

Alberta West Coast oil pipeline: analysis of routes, costs, Pathways carbon capture link and trade impacts shaping Canada’s crude future.

Enverus Press Release - Decoding CCUS project success
Financial Services
ByColton Wright

NGP, Tailwater, and Blackstone reveal how energy investors are structuring around AI cycle risk instead of forecasting it. Insights from Enverus Evolve 2026.

Enverus Media Advisory - Trump vs. Harris: A tale of two energy policies
Operators
BySimon Goettl

Accelerate inventory evaluation for oil and gas deals with Enverus ONE: location-level valuations, AI-assisted screening, and faster deal decisions.

Enverus Press Release - Enverus Earns Top Workplaces Honors for Fourth Consecutive Year
Energy Transition
ByAdam Robinson, Enverus Intelligence® | Research (EIR) Contributor

Fervo Energy valuation examined: Enverus warns of water-loss, thermal drawdown, and capex hurdles for EGS.

Enverus Intelligence® Research Press Release - OPEC+ cuts and Trump tariffs force price downgrade
Generative AI Other
ByAkash Sharma

Most energy companies have tried AI and walked away skeptical. This post breaks down the three-stage adoption curve, why energy is structurally different from every other industry, and how to diagnose exactly where your organization is stuck.

Enverus Intelligence® Research Press Release - Enhanced geothermal systems: The future of reliable, green power for AI data centers?
Power and Renewables
ByRebekah Mitchell

Greenfield costs are up, queues are long, and policy headwinds are real. Here's why more developers are turning to M&A to capture power market tailwinds.

Enverus Press Release - Price forecast downgraded in latest Fundamental Edge report
Energy Market Wrap
ByEnverus

BKV boosts Barnett output, Range targets growth, ET expands exports and Chevron builds power for AI demand in this week’s Energy Market Wrap.

Enverus Press Release - Natural gas emerges as premier choice for grid stability amid rising demand and coal retirements
Power and Renewables
ByEnverus

See how Enverus day-ahead wind forecasts outperformed ISO forecasts across ERCOT, SPP, and MISO during high-volatility spring ramp events in April–May 2026.

Enverus Press Release - Seeing the ceiling: Maximizing output for today’s natural gas-fired grid
Energy Transition
ByCarson Kearl, Enverus Intelligence® Research (EIR) Contributor

Project Jade Wyoming data center update: Crusoe out of 1.8GW Cheyenne campus; impacts on queue risk, interconnection and investors.

Let’s get started!

We’ll follow up right away to show you a quick product tour.

Let’s get started!

We’ll follow up right away to show you a quick product tour.

Sign up for our Blog

Ready to Subscribe?

Ready to Get Started?