Crews have begun construction on what will become Texas’s first end-to-end produced water lithium extraction facility, marking a new frontier for the state’s energy and mineral production industry. The small-scale commercial project, located in Joaquin in the Haynesville Shale region, is expected to transform waste streams from oil and gas operations into a high-value source of critical minerals.
At full operation, the facility will produce as much as 3,000 metric tons per year of high-purity lithium salts, which will be refined into materials used for rechargeable batteries and grid-scale storage systems. Industry leaders view the development as a key milestone that could position East Texas as a competitive player in the fast-evolving global lithium market.
The project is led by Mariana Minerals, which will fund, design, build, and operate the site. Select Water Solutions, a Texas-based company specializing in water treatment and infrastructure management, will provide technical expertise and access to its existing pipeline network. Together, the companies plan to source, transport, and process produced water from nearby oil and gas operations to recover lithium in a closed-loop system that minimizes waste and environmental impact.
Select Water Solutions will also earn a royalty interest under the terms of what both firms have described as a “pioneering project” for the region.
A New Chapter in East Texas Energy
The groundbreaking event earlier this week drew local officials, industry leaders, and state regulators, including Texas Railroad Commissioner Wayne Christian. Speaking at the site, Christian praised the development as a milestone that reflects the region’s ability to adapt to shifting energy priorities while staying true to its roots in oil and gas.
“East Texas has been an energy lifeline for Texas and the nation since the World Wars, fueling our victories and sustaining our economy for generations,” Christian said. “This groundbreaking marks a new chapter in that proud legacy. Most importantly, it brings new opportunities to rural East Texas, helping keep families together with good jobs, strong schools, and renewed hope for the future.”
Site work for the project began in July 2025, with full construction scheduled through December 2026. The facility is expected to enter commercial operation in the first half of 2027 and maintain production for at least two decades.
The development is projected to create over 200 construction jobs and about 50 permanent positions once operational. Local officials say the economic impact will extend beyond direct employment, as supply chain activity and infrastructure investment ripple through the region.
The initiative comes as Texas accelerates efforts to expand its footprint in critical minerals, a sector traditionally dominated by mining regions in South America, China, and Australia. In the U.S., Texas is emerging as a key player thanks to its oilfield infrastructure, workforce, and experience handling complex fluid management systems. The conversion of produced water from the oil patch into a feedstock for lithium extraction represents what some analysts are calling “the next phase” of energy transition technology.
A 2024 report from the Federal Reserve Bank of Dallas highlighted how aging oil fields in Texas and surrounding states are being reengineered into lithium sources. The report noted that “demand for lithium has boomed in recent years amid rising global sales of electric vehicles and the growing use of lithium-ion batteries to store electricity.” Analysts at the Fed expect lithium demand to double or even triple by 2030, driven by both transportation electrification and grid-scale storage requirements.
While the global competition for lithium remains intense, domestic production is gaining traction. Earlier this month, the Dallas Fed identified sixty-six new commercial lithium projects underway across the United States. Nevada leads the list, followed by Arkansas’s Smackover Formation and East Texas. Industry watchers say these developments could help the U.S. reduce its reliance on foreign mineral imports and strengthen energy security.
In Texas, the intersection of traditional oil and gas operations with advanced mineral extraction techniques presents both economic and environmental advantages. Produced water management, long considered a costly byproduct of drilling, is now being reframed as an opportunity to extract valuable minerals while reducing waste disposal volumes.
The Joaquin facility aims to demonstrate that scalable lithium extraction from oilfield brines can be both commercially viable and environmentally sustainable. By leveraging existing pipelines and disposal infrastructure, developers say they can keep costs down while creating a new revenue stream for energy producers.
“This is where Texas shines,” one local official said at the ceremony. “We take challenges that others see as waste and turn them into opportunity.”
As global automakers, battery manufacturers, and power utilities race to secure lithium supply, East Texas is poised to join the conversation in a meaningful way. The state’s first produced water lithium facility is not only a symbol of innovation but a practical example of how oil and gas expertise can evolve to meet the demands of a changing energy landscape.
With construction underway and a clear path toward commercialization, the project stands as a sign that the next chapter of Texas energy may be written not just in hydrocarbons, but in critical minerals born from the same wells that built its oil legacy.
