Calgary, Alberta (December 14, 2022) — Enverus Intelligence Research (EIR), a subsidiary of Enverus, the most trusted energy-dedicated SaaS platform, has released a report uncovering the economic and environmental potential behind direct lithium extraction (DLE) in the oil- and gas-rich Permian basin. The report dives into E&P operators capitalizing on the hidden potential within their wastewater, and at approximately 225,000 tons of estimated lithium carbonate per year, EIR is pointing to the possibility of an untapped, $19 billion industry in this single basin alone.
“Direct lithium extraction is the key to unlocking lithium security in North America,” said Graham Bain, vice president at EIR. “DLE is more environmentally friendly than traditional lithium mines, projects don’t take as long to commission and they have the potential to generate billions of dollars in revenue to E&P companies through the extraction of lithium in wastewater.”
Key takeaways from the report:
- Critical minerals projects in the U.S. benefit from policy enhancements with the Inflation Reduction Act, which brought in a 10% tax credit on mining and refining of lithium, and through federal funding of up to $1 billion per year with the Defense Production Act.
- Canada’s Critical Minerals Strategy will provide up to CA$3.8 billion over eight years in the form of infrastructure investments and exploration tax credits.
- E&P companies could turn wastewater into a revenue stream by leveraging DLE. EIR estimates wastewater in the Delaware Basin could produce ~225,000 tons of lithium carbonate per year, generating $19 billion in additional revenue.
- Permian lithium potential was calculated through the connection of academically sourced lithium concentrations with water production data from Enverus Foundations.
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About Enverus Intelligence Research
Enverus Intelligence Research, Inc. is a subsidiary of Enverus and publishes energy-sector research that focuses on the oil and natural gas industries and broader energy topics including publicly traded and privately held oil, gas, midstream and other energy industry companies, basin studies (including characteristics, activity, infrastructure, etc.), commodity pricing forecasts, global macroeconomics and geopolitical matters. Enverus Intelligence Research, Inc. is registered with the U.S. Securities and Exchange Commission as an investment adviser.
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