World-first lithium plant could help US meet 50% of demand using oilfield water
A US company specializing in advanced water and resource recovery has announced the launch of the world’s first fully integrated lithium facility that extracts the metal from oilfield produced water.
Set in Pennsylvania’s Marcellus Shale Formation, the facility, developed by Boston-headquartered firm Gradiant through its lithium-focused subsidiary alkaLi, will reportedly supply up to half of the country’s lithium demand.
Expected to begin commercial operations by early 2026, the site will be the world’s first to extract, concentrate, and convert (EC²) lithium in a fully integrated, end-to-end process from oilfield produced water.
This development follows alkaLi’s introduction of its EC² platform last year, which ensures at least 95 percent lithium recovery in a bid to help producers deliver battery-grade lithium carbonate more efficiently and sustainably.
From wastewater to energy storage
AlkaLi, which owns and operates the facility along with its land, equipment, and resource rights, said the vertically integrated model ensures long-term lithium supply.
By bypassing the complex permitting processes that often delay critical mineral projects, the plant significantly accelerates the timeline for battery-grade lithium production.
“We now have a fully operational lithium production asset in the US that proves what EC² can deliver,” Anurag Bajpayee, CEO of Gradiant, said. “This isn’t a concept – it’s a live facility demonstrating that clean, domestic lithium production is both viable and scalable.”
Built to scale, the EC² process is engineered to recover more lithium with less water, less energy, and less waste, making the economics and sustainability of critical minerals recovery finally align.
Early trials have already demonstrated 97 percent lithium recovery and 99.5 percent purity, far exceeding industry standards. Full commercial operations are already on track for early 2026.
The company also provides flexible partnership models, ranging from deploying its EC² technology at customer sites to designing, building, and operating integrated systems for partners, as well as producing and selling lithium from its own assets.
The perfect timing
According to the alkaLi, the innovation comes at a crucial time. With lithium demand expected to soar due to growth in electric vehicles and grid-scale energy storage, the US faces pressure to secure domestic supply chains.
Meanwhile, the company has secured a multi-year offtake agreement to supply up to 5,000 metric tons of battery-grade lithium carbonate annually to a US lithium-ion battery manufacturer for EVs and energy storage systems.
However, Bajpayee emphasized that the company’s aim isn’t to compete with customers, but to empower them and the broader industry, in order to meet growing demand for battery-grade lithium and drive the clean energy transition forward.
“This strategic investment in the Marcellus Shale, which could supply 50 percent of US lithium demand, validates the maturity of alkaLi’s technology and secures a long-term domestic supply,” Bajpayee concluded in a press release.
Unlike conventional brine or hard rock mining, alkaLi’s method utilizes produced water from oil and gas operations, tapping into a largely overlooked and underused resource in the lithium supply chain.
It integrates Direct Lithium Extraction (DLE), concentration, and final conversion into one streamlined system. It also delivers up to 50 percent lower capital and operating costs, faster deployment through modular pre-engineered systems, and AI-driven optimization for real-time control and predictive maintenance.
The process furthermore offers a reduced environmental footprint, simplified permitting, and the flexibility to process various feedwater sources, including geothermal brines, battery recycling streams, and oilfield produced water.