Introduction

In the following post, I will introduce you to a company that is changing the game of Lithium Extraction. I will not go too deep; instead, I will keep it simple and add links for further due diligence (DD).

LibertyStream Infrastructure Partners is a Lithium Extraction Company.
Lithium is traditionally achieved by hard-rock mining or evaporation pools.
More recent approaches include DLE-Direct Lithium Extraction.
Instead of waiting months-to-years for evaporation, they simply extract it using different methods.

Yet all of those methods include: permitting, expensive infrastructure, seismicity, and most importantly, years of work and capital.

Changing the Game

LibertyStream's approach is different and does not include any of the above. LIB simply enters an oil & gas wastewater facility and connects to their existing infrastructure.
In the Permian Basin, there are over 20 million barrels of wastewater being handled through existing, multi-billion-dollar infrastructure EVERY DAY.
That represents an opportunity of 200,000 tons per year of LCE (Lithium Carbonate Equivalent).
The current spot price for Lithium Carbonate is ~$30,000 per ton.

https://preview.redd.it/qov4d0rg1q1h1.png?width=1177&format=png&auto=webp&s=897fdd69d83ce3b56497e103592ce97e35eed68d

LIB designed a modular unit that can handle the ultra-small lithium concentration in this wastewater, engineering it so that it can easily fit into different sites.
How easily?
Just look at their actual timeline!

Feb-9: LIB enters into a supply agreement with Select Water Solutions
Mar-1: LIB assesses the first select site
Apr-9: Announced Lithium Carbonate Production

Alex Wylie LIB CEO at the new Select site

Economics

A modular unit of 1,000 tpa (tons per annum) utilizing Gen-6 technology has a CapEx of ~$30M, while the OpEx per ton has been declared in the past as sub-$4K per ton.
Yet, Select Water Solutions performing pre-treatment as part of their recycling process-which is approved by LIB-should make the process even cheaper.
That unit will support 1,000 tpa at a premium price due to being domestic and independent of foreign countries.

Possible Revenue at different spot prices, Current Spot price is ~30,000$

Real numbers should come shortly as LIB plans to make the first site commercial soon after the coming off-take.

Execution

A few years back, when the lithium shortage became clear due to EVs, power grids, and AI, many operations set targets to go commercial by 2026-2028.
Billion-dollar market cap companies still suffer major delays, as setting up a new lithium mine is a very complex operation.

LIB, on the other hand, is in a different league. Having the infrastructure set up and using modular units supporting smaller volumes (compared to mines) is huge.
LIB has proved themselves to beat their timelines, acting as execution monsters.
They have already received third-party lab specification compliance for battery & technical-grade lithium on a commercial scale.

That is a huge milestone for any lithium producer; achieving battery grade requires consistency and very high purity levels that can take years to reach.

From LIB Investor presentation

Operations

LIB are operating in the Permian Basin and the Bakken Basin.

Permian Basin
- Partnered with Select Water Solutions.
- Finished setting up the first commercial site.
- First ton sale is set for June 2026, probably tailored to customer specs.
- Announced at least another 3 sites by July 2027.
Bakken Basin
- Partnered with Wellspring Hydro.
- Signed an MOU with Packet Digital to support their new Badlands facility for drone batteries.
- Packet Digital and LIB received grants from the state of North Dakota for their goal of domestically sourced batteries for the U.S. Army.

Strategy

At least 85% of the current world lithium goes through China. As prices are surging due to growing demand and the Jianxiawo Mine closing, the expected shortage is even bigger.

Lithium sets the foundation for the EV, drone, AI, and solar grid industries for energy storage, and it is expected to be in a shortage in the coming years.

Domestic production is a national interest for the United States, and therefore, Packet Digital was just awarded $50M to support locally supplied batteries for the army.
LIB is set to be a major domestic lithium producer since there is almost no domestic production today, with a potential in both basins of up to 250,000 tpa.
Their growth strategy is setting up the first four sites and growing exponentially in the following years, as there will be non-dilutive capital to support this growth.

From LIB Investor presentation

Catalysts

Off-take Agreements: The first ton sold will be part of a long-term off-take agreement expected by EOY.
Conferences: LIB is appearing in a series of major conferences, reaching possible new customers and probably institutional investors.
Institutional Investment: As the first ton is sold, it will become possible for many institutions to invest
Exchange Uplisting: Uplisting to the NASDAQ/NYSE has been stated as a goal for the end of 2026 or beginning of 2027.
North Dakota Expansion: The development of the future North Dakota facility.
New Permian Deals: Another supply agreement in the Permian, as LIB is one of the only go-to options in lithium extraction at these specific lithium concentrations.

LINKS & DD's

Packet digital announced it Navy contract as they have been awarded 9.8M following them moving to phase 3- moving to production.

Lets be clear we have an MOU with them not a contract.

But we get to be optimistic as they have not been linked with other Domestic Li suppliers besides us.

Packet Digital always aimed for domestic supply and with LIB and wellspringhydro has been granted for it.

What really caught me was:

“We worked to secure continued funding under this contract because it keeps that work moving forward in North Dakota, supports good-paying manufacturing jobs and helps ensure a secure supply chain while reducing our reliance on materials from adversaries"

LIB always stated Permian is their moto.

But getting this as well could be a great addon and a greater validation, hopefully will do.

IF not we are not short on huge catalysts in the Permian

r/LIBstream

LIB hits first ton milestone

Libertystream Introduction Post - Changing the mining rules