Element3, a company specializing in extracting lithium from oil and gas wastewater, announced that it has closed its seed investment round. Major investors include EIC Rose Rock, other oil and gas family offices, and other strategic partners. The financial terms were not disclosed.
The funding will enable Element3 to accelerate the development and testing of its patent-pending Direct Lithium Extraction (DLE) technology, and plans to deploy its technology in field operations by early 2024.
“Extracting lithium from oil and gas wastewater could supply nearly half of the approximately 725,000 tons of lithium U.S. EV battery gigafactories will need annually by 2030,” said Andrew Lackner, Managing Director of Energy Innovation Capital. “EIC Rose Rock and our corporate partners are excited to invest in, and partner with, Element3 to support the demonstration of the economic viability of Element3’s pioneering DLE technology in 2024.”
According to the company, the U.S. oil and gas industry generates about one trillion gallons of wastewater annually, which is estimated to contain 350,000 tons of lithium. Element3’s technology is said to transform this industrial waste into a valuable domestic commodity while reducing water consumption and greenhouse gas emissions.
“Element3 is poised to reshape the lithium industry, marking a significant step toward a more sustainable and environmentally responsible future,” commented Hood Whitson, Founder and Chief Executive Officer of Element3. “This strategic funding underscores a collective recognition of the ever-evolving energy landscape and the commitment of forward-thinking investors to embrace a sustainable future.”
According to Mercom’s 9M And Q3 2023 Funding and M&A Report for Storage & Smart Grid, VC funding in Energy Storage in the first nine months (9M) 2023 was up by 115% YoY with $8.6 billion in 68 deals compared to $4 billion in 74 deals in 9M 2022.