Select Water Solutions and LibertyStream Infrastructure Partners Announce Definitive Agreement to Build Out Commercial Lithium Carbonate Production Units in Texas; First 1,000-Tonne Facility Slated for Commissioning by December 2026
LibertyStream secures commercial path through Select Water partnership but faces heavy CAPEX burden for 2026 build-out.
The most recent news (February 9, 2026) announces a definitive agreement between LibertyStream and Select Water Solutions Inc. to deploy commercial lithium carbonate production facilities in the Midland Basin, Texas. The agreement outlines a three-stage development program. Stage 1 involves a 1,000-tonne per annum (tpa) facility in Howard County, scheduled for commissioning by December 2026, with construction starting in Q2 2026. LibertyStream is responsible for funding, designing, constructing, and operating the facilities, while Select provides water infrastructure and pre-treatment expertise in exchange for a royalty on production. Stages 2 and 3 involve additional 1,000+ tpa facilities stretching into 2027 and beyond.
- Commercial Validation: This is a significant milestone that moves the company from the pilot phase (demonstrated in 2025) to a contracted commercial deployment. Partnering with an established player like Select Water Solutions derisks the "brine supply" and "infrastructure" side of the equation.
- Financial Burden: The agreement explicitly states LibertyStream must "fund, design, construct, and operate" the facilities. While the company recently raised CAD $12.5M (Jan 2026), building multiple commercial-scale units will likely require substantially more capital than is currently on the balance sheet.
- Capacity Context: A 1,000-tonne facility is relatively small in the global lithium market, but for a company of this size, it represents the first step toward meaningful revenue.
- Royalties: The agreement introduces a royalty to Select Water. While it avoids upfront infrastructure costs for LIB, it creates a permanent drag on the per-tonne margin of the produced lithium.
LibertyStream (formerly Volt Lithium) is focused on Direct Lithium Extraction (DLE) from oilfield brines. Their flagship operation is in the Permian Basin, Texas, where they have deployed a "Generation 5" DLE unit capable of processing 10,000 barrels of brine per day. They have successfully produced battery-grade lithium carbonate at a pilot scale (10 tpa) and are now transitioning to their first commercial unit (1,000 tpa).