LibertyStream Signs Feedstock Term Sheet with Goodnight Midstream for North Dakota Lithium Expansion; Independence 1 Targets 2027 Commissioning

LibertyStream Infrastructure Partners Inc. (LIB) has entered into a non-binding term sheet with Goodnight Midstream, LLC to deploy its proprietary direct lithium extraction (DLE) technology within Goodnight’s Bakken produced water infrastructure in North Dakota. The partnership centers on "Independence 1," LibertyStream’s first commercial lithium carbonate facility in the region, which is designed to produce up to 500 tonnes per annum of battery-grade lithium carbonate. Commissioning of the facility is targeted for the third quarter of 2027.

The arrangement includes significant financial support from the State of North Dakota, comprising US$4.7 million in grants and loans via Wellspring Hydro, as well as potential project financing covering up to 50% of facility costs. LibertyStream funds, designs, constructs, owns, and operates the facilities, while Goodnight has no capital or operating cost obligation and handles water sourcing and transport. In return, Goodnight receives a revenue share on lithium carbonate produced and sold, with the rate increasing above a specified lithium carbonate price, plus royalties on other critical minerals.

An exclusivity condition requires LibertyStream to commission an initial facility with a capacity of approximately 23,000 barrels per day on or before December 31, 2027. Failure to meet this deadline limits exclusivity to only commissioned facilities. The term sheet is non-binding and does not create binding obligations, with no assurance that a definitive agreement will be entered into.

LibertyStream Infrastructure Partners Inc. (LIB) has secured a second major feedstock source in the Bakken, validating its multi-basin expansion strategy and reducing reliance on its existing Permian Basin partnership with Select Water Solutions. The company received US$4.7 million in state funding, with potential project financing covering up to 50% of facility costs for the Independence 1 project.

The revenue-sharing structure and royalty obligations to Goodnight will impact future margins, though the model aligns with industry standards for produced-water partnerships. However, the non-binding nature of the term sheet and the strict December 31, 2027 commissioning deadline for exclusivity introduce execution risk. LibertyStream must still secure definitive agreements, permitting, and the broader US$95 million Endurance Finance facility to fund construction. The announcement is consistent with previously disclosed expansion plans and does not alter the immediate financial reality or de-risk the near-term cash runway.

LibertyStream Infrastructure Partners Inc. (LIB) is a pre-revenue critical minerals company focused on commercializing its proprietary Direct Lithium Extraction (DLE) and refining technology. The firm integrates its DLE systems with existing oilfield water infrastructure to extract lithium from produced brine and refine it into battery-grade lithium carbonate.

The company’s flagship projects include Freedom 1 in the Permian Basin (Texas), which targets 1,000 tonnes per annum with a December 2026 commissioning target, and Independence 1 in the Bakken Basin (North Dakota), targeting 500 tonnes per annum with a Q3 2027 commissioning target. LibertyStream has successfully produced specification-compliant lithium carbonate at its Freedom Launchpad facility, achieving 99.7% purity and securing initial offtake agreements and customer qualification programs.