Caprock Direct Lithium Extraction (Caprock DLE) licensed a polymer-based lithium extraction technology co-owned by Texas Tech University and Caprock DLE CEO Jonathan Grammer for use in the oil and gas industry.

The technology was developed through research at Texas Tech focused on extracting lithium from oil and gas produced-water streams. In 2024, Caprock DLE began funding Texas Tech research into lithium separation from produced water through the Critical Minerals and Produced Water Research Fund.

Caprock DLE plans to integrate this licensed technology with its own proprietary technology as it develops a modular system for field deployment. The company began construction of its first modular unit this summer and plans to begin field operations in spring 2027.

As of early September 2026, battery-grade lithium carbonate was assessed near $19,750 per metric ton. Texas produces more than 25 million b/d of produced water through normal oil and gas operations, costing operators upward of $10 billion/year. Recovering valuable critical minerals from those waste streams could create a domestic supply opportunity while potentially offsetting some disposal costs.

Separately, in June, Caprock DLE independently filed for patent protection on its proprietary modular unit. The company plans to integrate the Texas Tech co-owned, licensed technology with its proprietary technology in a system designed for deployment across Texas to recover lithium carbonate from produced water streams.

According to Caprock DLE, its process has also shown success removing sodium and sodium chlorides. The company believes that capability could support treatment of produced water for potential reuse, including cooling water for data centers.