Can the Permian Turn Water Into White Gold?

Select and LibertyStream target 2026 launch for Permian lithium extraction, turning oilfield wastewater into a new US supply source

24 Feb 2026

A quiet shift is underway in the Permian Basin, where oilfield wastewater may soon power more than drilling rigs. What was long treated as a costly byproduct is being recast as a potential cornerstone of America’s lithium supply chain.

Select Water Solutions and LibertyStream Infrastructure Partners have agreed to develop lithium production facilities in West Texas, using produced water as feedstock for battery-grade materials. The first plant is targeting commissioning by December 2026, with large-scale output expected in 2027. At full capacity, it could produce up to 1,000 metric tons of lithium carbonate annually, a modest but meaningful addition to domestic supply.

For decades, produced water has been an operational burden. Companies have spent heavily on transporting, treating, and injecting it back underground through an extensive network of pipelines and disposal wells. Now that same infrastructure could become an industrial advantage, anchoring a new stream of critical mineral production if the technology performs as planned.

The partnership blends Select’s deep footprint in the Midland Basin with LibertyStream’s extraction strategy. By colocating processing units with existing water systems, the companies aim to trim capital costs and speed permitting. Millions of barrels already move through these networks each day, offering scale and logistical efficiency that most new mineral ventures struggle to match.

The timing is deliberate. Lithium demand continues to rise as electric vehicle manufacturing expands and grid storage projects multiply across the country. Federal policymakers are also pushing to reduce reliance on foreign mineral supply chains, giving projects like this both commercial and political tailwinds.

Yet the road to commercial success is far from assured. Lithium concentrations vary widely across formations, and scaling extraction technologies to consistent output remains a technical challenge. Developers must also secure regulatory approvals, financing, and long-term offtake agreements before projected revenues become tangible.

Competition is intensifying in Texas and New Mexico, where similar concepts are moving from pilot to plan. Early operators that demonstrate reliability and competitive costs could gain a durable foothold.

If it works, the implications stretch beyond a single facility. The Permian’s sprawling water network could evolve into a platform for mineral recovery, reframing wastewater not as a liability, but as the next chapter in America’s energy story.