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Caprock DLE Licenses Technology to Extract Texas Lithium

The firm plans to recover lithium from oil field wastewater using newly licensed polymer technology.

Updated on Oct. 29, 2026 in Oil and Gas

Isometric editorial illustration of a modular industrial filtration unit situated on a sparse, arid Texas landscape.
Caprock DLE has licensed polymer-based technology to extract lithium from wastewater streams generated by oil and gas operations in Texas. AI Illustration. Upload story photo >

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Caprock DLE has secured a license for polymer-based lithium extraction technology from Texas Tech University. The company aims to integrate this process into modular systems designed for use in Texas oil and gas fields.

Why it matters

This technology aims to create a domestic lithium supply while potentially offsetting the high costs associated with managing oil and gas produced water. By repurposing waste streams, operators could transform a financial liability into a source of valuable minerals.

Texas generates more than 25 million barrels of produced water daily, incurring over $10 billion in annual disposal costs for operators. Battery-grade lithium carbonate was valued at approximately $19,750 per metric ton in September 2026.

The players

Caprock DLE

An energy technology company focused on developing modular systems to extract lithium from industrial wastewater.

Texas Tech University

A public research university in Texas that conducts advanced academic and commercial research in engineering and energy extraction.

Jonathan Grammer

An individual co-owner of the polymer-based lithium extraction technology licensed to Caprock DLE.

The details

The process uses a polymer-based method to isolate lithium from wastewater streams generated during oil and gas extraction. Caprock DLE is combining this licensed technology with its own proprietary modular units, for which it filed patent protection in June 2026.

Timeline

  1. Caprock DLE began funding lithium research at Texas Tech in 2024.

  2. The company filed for a modular unit patent in June 2026.

  3. Construction of the first modular unit began in summer 2026.

  4. Lithium carbonate prices were assessed in September 2026.

  5. Field operations are scheduled to begin in spring 2027.

Market Landscape

This development aligns with the national trend of increasing domestic mineral production following the Inflation Reduction Act's domestic mineral supply mandates. The move positions Caprock DLE to capitalize on the growing demand for battery materials by turning waste disposal operations into production assets.

The potential recovery of lithium from produced water could significantly lower the operational costs for Texas energy producers. For the broader public, this may support the development of a more localized and cost-effective supply chain for battery production.

The takeaway

Advancements in mineral extraction from wastewater demonstrate how industrial waste can be transformed into a valuable economic commodity. Industry participants should monitor the efficiency of these modular units as they transition from research settings to active field deployment.

What happens next

Caprock DLE is scheduled to commence field operations in the spring of 2027.

Further reading

For more information on energy industry developments in the region, visit Texas Oil and Gas.

Source note: This article includes information reported by Water Tech Online.

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Do you support repurposing industrial waste water for cooling local data centers?