THE PROBLEM: Lithium is key to national security, energy, and communication industries in the United States, but access to it is critically limited. The U.S. relies almost completely on imports of the essential mineral: Less than 2% of the lithium needed for U.S. production comes from domestic sources, with major exporters like China, Argentina, and Chile creating supply chain vulnerabilities. Extraction of lithium is also technically challenging, costly, and inefficient for commercial viability.

THE SOLUTION: To create a domestic, reliable source of this precious commodity, Oak Ridge National Laboratory (ORNL) has partnered with Element3, a Texas-based company that transforms wastewater from oil and gas production into battery-grade lithium. For every million barrels of oil extracted, there are 4 million barrels of produced water, which is a complex solution of brine, injected water, and contaminants. ORNL’s technologies enable Element3 to extract lithium from produced water and will allow the company to establish the first domestic lithium production facility to open in nearly 60 years. ORNL licensed a suite of seven technologies to Element3 that collectively cover all facets of lithium extraction, purification, and concentration for battery-grade production.

THE TECH TRANSFER MECHANISM: The partnership between ORNL and Element3 began when both recognized that the lab’s extraction, concentration, selective absorption, and separation technologies — originally developed for other purposes — could be adapted for oil and gas wastewater applications. ORNL’s goal of advancing domestic production capabilities for critical minerals fit in neatly with Element3’s objective to create a resilient, domestic lithium supply chain at commercial scale. In July 2021, a non-disclosure agreement (NDA) established the foundation for the partnership, before ORNL filed patents covering the seven technologies from 2021 to 2023. An expedited licensing strategy was created, and the partners signed a commercial license agreement in 2025.

THE TECH TRANSFER EXCELLENCE: Transferring ORNL’s technologies to Element3 required a carefully orchestrated and rapid approach that combined multiple mechanisms. Around the establishment of an NDA, an expedited licensing strategy, and a commercial license agreement, ORNL also ensured that all intellectual property requirements were met, and that patents covering the seven technologies were filed and adapted specifically for oil and gas wastewater applications.

THE IMPACT: The transfer of ORNL’s technologies directly advances the mission of the Department of Energy’s Critical Materials Institute to provide scientific and technological breakthroughs that strengthen U.S. energy security and expand domestic manufacturing capability. The technology transfer will enable domestic lithium production at a scale not seen since 1967, and just in time: By 2030, U.S. battery plants are expected to require 40 times the current production of U.S. lithium, with forecasts showing current production satisfying only 25% of the demand. China currently controls 83% of processed lithium needed for lithium-ion batteries, leaving the U.S. vulnerable to foreign influence. In a demonstration, Element3 proved its ability to achieve over 85% lithium recovery from wastewater containing less than 40 parts per million, and third-party testing confirmed that the extracted elements met battery-grade standards.