LibertyStream announced it has entered into a nonbinding feedstock term sheet with Goodnight Midstream LLC for the company to deploy its proprietary direct lithium extraction (DLE) and refining systems at Goodnight’s Bakken produced water infrastructure. The partnership is set to begin with Independence 1, LibertyStream’s proposed first commercial lithium carbonate facility in North Dakota.
In September, the company reported that its West Texas Midland Basin demonstration plant has successfully refined electric vehicle battery-grade lithium carbonate over multiple 24-hour production cycles over the past 3 months.
According to the agreement, Goodnight will source, transport, and manage the produced water, while LibertyStream will fund, design, construct, and operate the lithium facilities. LibertyStream would receive produced water at delivery points, process it at its facilities, and return the treated water to Goodnight. Goodnight will receive a revenue share tied to the lithium carbonate production and sales at each facility. The payment will be calculated on realized sales proceeds and will increase according to a tiered structure when lithium carbonate prices exceed a specified benchmark.
LibertyStream’s exclusive rights are contingent on meeting specified conditions, including the commissioning of an initial facility with the ability to process approximately 23,000 B/D of produced water by 31 December 2027.
Independence 1 is designed to produce approximately 500 tonnes of battery grade lithium per year, with production targeted to begin in Q3 2027. LibertyStream said that Independence 1 is the first of a series of facilities the company plans to construct as part of its strategy to establish a domestic lithium supply chain in North Dakota, including supplying Fargo-based battery manufacturer, Packet Digital.
Through its partnership with Wellspring Hydro, LibertyStream has access to $2.2 million in grant funding and $2.5 million in loans from the North Dakota Industrial Commission’s Clean Sustainable Energy Authority to support the project.
The company is collaborating with the State of North Dakota to evaluate project financing options for Independence 1 and future Independence facilities, with funding potentially covering up to 50% of facility costs.