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

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.

“This is a historic step forward not only for the State of Texas and Texas Tech University, but also for the nation,” said Grammer. “With rising dependence on foreign lithium and growing domestic demand for battery energy storage, electric vehicles, phones, and laptops, the ability to recover lithium from produced water eases a major burden for oil and gas operators and strengthens U.S. critical-minerals security.”

Caprock DLE plans to integrate the 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.

“The partnership with Caprock DLE exemplifies how universities and industry can work together to transform research discoveries into technologies with meaningful market potential,” said Jennifer Souter, Senior Managing Director for Research Commercialization, Texas Tech University. “By protecting and licensing intellectual property developed through collaborative research, Texas Tech is helping move innovations beyond the laboratory and into applications that support domestic energy security, resource recovery, and economic growth.”

In March 2025, President Donald Trump signed executive actions intended to increase domestic mining and processing of critical minerals such as lithium and reduce U.S. reliance on foreign sources. As of early September 2026, battery-grade lithium carbonate was assessed near $19,750 per metric ton (CIF Asia). Texas produces more than 25 million barrels of produced water per day through normal oil and gas operations, costing operators upward of $10 billion per year. Recovering valuable critical minerals from those waste streams could create a domestic supply opportunity while potentially offsetting some disposal costs.

“Working with Texas Tech on this research has been one of the most rewarding partnerships of my career as an alum,” said Raina Hornaday, Co-Founder of Caprock DLE. “Partnering with Dean Tosha Dupras and the Texas Produced Water Consortium to turn a produced-water challenge into a domestic lithium opportunity is exactly why staying connected to Texas Tech matters.”

Dean Tosha Dupras notes, “This partnership represents the College of Arts & Sciences at its very best—bringing together innovative research, industry collaboration, and the talents of our alumni to address consequential challenges facing Texas and the nation. It is especially rewarding to see two of our alumni return as industry partners, combining their entrepreneurial vision with Texas Tech research to turn a costly waste stream into a potential domestic source of critical minerals.”

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 as cooling water for data centers.

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