News Release

Untapped: Lithium Extraction Uncovers $19B Potential in Permian Alone

10% tax credit within Inflation Reduction Act uncovers hidden mineral opportunities

byEnverus

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.

Graph showing yearly lithium production and revenue

Members of the media should contact Jon Haubert to schedule an interview with one of Enverus’ expert analysts.

About Enverus
Enverus is the most trusted, energy-dedicated SaaS platform, offering real-time access to analytics, insights and benchmark cost and revenue data sourced from our partnerships to 98% of U.S. energy producers, and more than 35,000 suppliers. Our platform, with intelligent connections, drives more efficient production and distribution, capital allocation, renewable energy development, investment and sourcing, and our experienced industry experts support our customers through thought leadership, consulting and technology innovations. We provide intelligence across the energy ecosystem: renewables, oil and gas, financial institutions, and power and utilities, with more than 6,000 customers in 50 countries. Learn more at Enverus.com.

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.

Media Contact: Jon Haubert | 303.396.5996

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