LibertyStream Sees Massive Lithium Potential From Gas, Oil Wastewater

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LibertyStream Infrastructure Partners Inc (LIB:TSX; LIBLF:OTC), in the midst of pivoting from a traditional miner to a more partner-driven approach, announced it has reached a crucial development milestone by successfully processing over 250,000 barrels of Permian brine at its Texas field unit using its unique Direct Lithium Extraction (DLE) technology.

Months of work set the stage for the company to move into the final phase of risk reduction: transforming lithium chloride eluate into commercial-grade lithium carbonate, the company said in a release on September 23. Through ongoing advancements in its technology and operational systems, LibertyStream has significantly lowered operational risk, enhancing its preparedness for large-scale field deployment and lithium production.

"We are very pleased to achieve the 250,000-barrel technical DLE processing milestone," President and Chief Executive Officer Alex Wylie said. "Since the start of 2025, our field team has operated seven days a week, relentlessly focused on upgrading and improving our system in preparation for commercial deployment. As we approach the fourth quarter, the commissioning of our refining unit and subsequent conversion of stockpiled lithium eluate into commercial-grade lithium carbonate marks the final critical step toward launching full-scale operations in 2026."

According to a June 18 article for AInvest by Victor Hale, "The energy transition has created a paradox: the world's largest oil and gas basins are now sitting atop a lithium boom. Volt Lithium's rebranding to LibertyStream Infrastructure Partners Inc. (pending regulatory approval) marks a bold strategic shift to capitalize on this opportunity."

Hale continued, "By leveraging existing oilfield infrastructure and advancing its Direct Lithium Extraction (DLE) technology, LibertyStream is positioning itself to become a near-term leader in North American lithium production."

As head of Investor Relations Bill McClain told Streetwise, the company has a "much more bootstrappable approach to a business" than the traditional yearslong saga of a junior building a mine.

Helping them is the fact that what the company said what it is doing is unique even in the DLE space.

"We are the only at least public company that I know of that is targeting extracting from the oil and gas fields' produced water, which is a waste product," he said. "Wastewater are brought to surface with the oil and gas industry every single day."

That industry already has "trillions of dollars of infrastructure" in place and Liberty just has to install its equipment on that foundation.

"We don't have to move water," he said. "We don't have to lift it from below. We just have to set up shop right where the operators in the oil and gas industry are disposing of their waste product, which contains many, many valuable minerals in it. And the first one that we would like to extract … is lithium."

More than 250,000 Barrels Processed

LibertyStream has processed more than 250,000 barrels of brine using its proprietary DLE technology at its Texas field unit, conducting thousands of test and production cycles under real-world oilfield conditions. Over the past nine months, the Field Team has concentrated on continuous system enhancements, boosting overall system performance. Key operational improvements include:

Pre-Treatment: LibertyStream has introduced a targeted pre-treatment step in its DLE operations to eliminate iron and organic compounds from the brine. This improvement has significantly enhanced extraction efficiency while reducing reagent consumption, leading to better cost management in field operations.

Fluid Temperature Management: During the processing of over 250,000 barrels of brine, LibertyStream's field team conducted extensive testing across various temperatures in both the DLE and acid recovery stages. By optimizing thermal conditions to improve system kinetics, the team found an ideal balance between performance, cycle speed, and energy input. This focused approach has resulted in faster cycle times and lower operating costs, further enhancing the efficiency of the DLE process.

System Design Improvements: Since beginning field operations in February 2025, LibertyStream's Field Team has implemented a four-module system to facilitate real-time experimentation and performance benchmarking. This modular strategy has allowed the team to test and refine design improvements across individual units, using comparative analysis to determine optimal configurations. The outcome is a continuously operating field unit that supports iterative innovation while ensuring consistent performance.

Approaching Final Phase of De-Risking

LibertyStream said it is approaching the final phase of reducing operational risks with the expected arrival and setup of its lithium carbonate refining unit in the early part of the fourth quarter of 2025.

This milestone is a crucial step toward demonstrating complete field production. In preparation, the field team has initiated site development activities, including laying concrete pads and establishing on-site power generation to support the refining infrastructure, the company said. Additionally, the team has built up a stockpile of lithium chloride eluate, ensuring a ready supply for processing once the unit is operational.

Upon commissioning, LibertyStream aims to demonstrate seamless, on-site execution — converting oilfield-produced brine directly into technical and battery-grade lithium carbonate, all within the field environment.

"LibertyStream is uniquely positioned as a de-risked leader in Direct Lithium Extraction," Wylie said. "Our operations are field-tested and validated, underpinned by billions of dollars in proven oilfield infrastructure, and driven by a capital-efficient deployment model that reduces risk while accelerating growth. With refining and upgrading activities set to begin, we are prepared to scale across the largest markets."

Wells Operating for Decades

LibertyStream's potential for scalable growth is anchored in the extensive, long-established infrastructure of North America's leading oil-producing regions. The Permian Basin alone generates over 20 million barrels of water daily, supported by a vast network of disposal wells and pipelines that have been operating reliably for decades. In the Bakken, an additional 1.5 to 1.7 million barrels per day are managed by similarly mature systems.

These existing networks — representing billions of dollars in cumulative investment — provide a de-risked and cost-effective foundation for lithium extraction, eliminating the need for new produced water infrastructure to support LibertyStream's DLE process.

Based solely on the Permian and Bakken, the company estimates an upper production potential of approximately 220,000 tonnes per annum (tpa) of lithium carbonate equivalent, with field operations already validating the technology. Looking forward, LibertyStream plans modular expansion into additional basins across North America and beyond, paving a sustained and de-risked pathway for long-term growth.

Although the element lithium itself may face some volatility in the markets, Hale wrote for AInvest that the risk is "mitigated by LibertyStream's low-cost model and structural demand for North American lithium. The U.S. Inflation Reduction Act's incentives for domestric production further tilt the odds in the comnpany's favor."

Hale continued, "By leveraging the Bakken's rich brines, existing oilfield assets, and government backing, it's building a cost-efficient, scalable business model. With regulatory approvals on the horizon and a proven DLE track record, this is a rare opportunity to invest in a company primed to dominate a critical supply chain for the EV revolution."

The Catalyst: 'A Lithium Crisis' in the US

According to a September 26 piece on CarbonCredits.com, the lithium industry captured significant attention recently when shares of Lithium Americas (NYSE: LAC) surged nearly 95% following reports that the Trump administration is contemplating acquiring an equity stake in the company's Thacker Pass mine in Nevada.

"Behind the headlines lies a deeper story: America's ambition to lead the clean energy transition risks colliding with a stark supply shortage," the piece noted.

If the government should invest in Lithium Americas, it would represent one of the most substantial government interventions in U.S. mining in recent years, highlighting the growing importance of lithium in national policy, the site said.

"The United States faces a lithium crisis that makes its clean energy ambitions look more like an aspiration than an execution," CarbonCredits.com noted. "Current domestic production is only 2,700 metric tons a year. That's too small compared to the 500,000 tons needed by 2030 to hit electric vehicle (EV) goals."

At current mining rates, the U.S. produces enough lithium for only about 158,000 Tesla Model 3s each year. This is in a market where Americans purchased 1.4 million EVs in 2024 alone, with demand expected to rise sharply in the coming years. This disparity underscores a stark reality: America's lithium supply chain is not adequately equipped to support its electrification objectives, the article said.

The move to acquire a stake in Lithium Americas Corp. (LAC) represents a pivotal moment for the lithium industry, tying supply security directly to the future of the energy transition, Muhammad Umair wrote for FX Empire on September 28.

"While lithium prices remain weak under pressure from Chinese oversupply, long-term demand for Electric Vehicles (EVs) and storage technologies continues to climb," Umair wrote. "This contrast between short-term weakness and long-term growth defines today's lithium outlook."

The United States accounts for less than 1% of the global lithium supply, with battery minerals traveling an average of 50,000 miles before reaching cell production, the FX Empire article noted. This reliance on foreign sources exposes U.S. defense and technology sectors to supply chain vulnerabilities.

Ownership and Share Structure

According to Refinitiv, about 9% of the company is owned by insiders and management, and about 9% by institutions. The rest is in retail.

Top shareholders include Pathfinder Asset Management Ltd. with 8.23%, the CEO Wylie with 6.7%, Kyle Robert Hookey with 1%, and Warner Uhl with 0.98%, Refinitiv said.

Its market cap is CA$38.05 million with 172.93 million shares outstanding. It trades in a 52-week range of CA$0.17 and CA$0.49.