Element3 just raised a fresh round of funding to launch the first US commercial lithium extraction plants, and it’s sourcing the lithium from oil and gas wastewater in Texas. That’s a big deal because it means there will be a domestic lithium supply for EVs and battery storage within a few months.
The critical materials extraction company announced the close of its Series A funding round led by TO VC. Fort Worth, Texas-based Element3 will use the money to deploy its first extraction plants on oil and gas company Double Eagle Energy Holding’s water infrastructure in the Permian Basin by the end of 2025. That means Element3 will become the first new lithium extraction player in the US to reach commercialization, with its first commercial shipments expected by year-end.
Element3’s breakthrough technology pulls battery-grade lithium from the Permian Basin’s produced water, turning a waste stream from oil and gas drilling into a valuable domestic resource. With a lithium carbonate plant already installed in the region, the company says its vertically integrated setup is ready to supply lithium for the US energy transition.
“This funding accelerates our mission to build American lithium independence from the ground up,” said Hood Whitson, Element3’s founder and CEO. “While other US projects are still in planning and years away from production, we’re bringing our plants online now and shipping product this year. Using existing oilfield infrastructure, we can move faster, cleaner, and at a fraction of the cost.”
The US oil and gas industry produces over 1 trillion gallons of wastewater annually, containing an estimated 250,000 tons of lithium carbonate – more than half the country’s projected supply gap by 2030. By tapping into that wastewater, Element3 avoids many challenges that delay conventional lithium mining, such as lengthy permitting, land disruption, and high carbon emissions. Instead, it uses existing infrastructure, turning waste into a new, low-carbon supply stream.
Recovering lithium from wastewater is significantly more environmentally friendly than conventional mining. It doesn’t require digging new pits, evaporating vast ponds, or consuming large amounts of fresh water. It also eliminates the need to transport raw materials internationally, helping reduce emissions tied to global supply chains.
“So much capital has gone into onshoring battery manufacturing, but far less into securing the upstream supply of lithium itself,” said Joshua Phitoussi, managing partner at TO VC. “Traditional mining takes billions and more than a decade to bring online. Element3’s approach is faster, cheaper, and uses an already abundant resource. This means that Element3 will be the first [direct lithium extraction] company to get to commercial scale, and could become a top three domestic lithium producer within the next three years.”
Read more: A $1.2B battery-grade lithium refinery breaks ground in Oklahoma
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