Companies developing lithium projects in East Texas are working with local officials while state lawmakers prepare to address rules governing mineral rights, water, royalties, property taxes and brine extraction. EnergyX and GeoFrame are pursuing projects in the region, where the Smackover Formation contains lithium-rich brine deep beneath the ground.
Key Takeaways
- East Texas sits above the lithium-rich Smackover Formation, attracting companies developing lithium production projects.
- EnergyX is developing a facility near Texarkana, while GeoFrame is pursuing a proposed project in Mount Vernon.
- The Texas Railroad Commission currently oversees brine production, including lithium-related operations.
- State lawmakers face questions involving mineral rights, royalties, water management, property taxes and brine reinjection.
- Companies are pursuing direct lithium extraction to recover lithium from deep underground brine.
East Texas Lithium Projects Move Toward Development
EnergyX is developing a lithium production facility in Texarkana, while Austin-based GeoFrame is pursuing a project in Mount Vernon, about 60 miles north of Tyler. Both companies are developing projects around lithium-bearing brine found in the Smackover Formation.
East Texas regional economy has historically included timber, agriculture and other industries, while communities such as Tyler and Longview have also invested in education and health care.
GeoFrame CEO Bruce Cutright has worked with community leaders in Franklin County on the company’s proposed project. The company initially targeted a 2026 groundbreaking, but the start was pushed back because of financing and project changes.
GeoFrame’s proposed facility would produce more than 83,000 metric tons of battery-grade lithium carbonate annually if completed. The company has described Franklin County and surrounding areas as having some of the highest lithium concentrations within the Texas portion of the Smackover Formation.
EnergyX is developing its facility in Hooks, near Texarkana. The company is using direct lithium extraction technology to recover lithium from brine brought to the surface.
The projects have placed lithium production among the economic-development issues facing East Texas communities. Scott Norton, president of the TexAmericas Center, said lithium production could bring capital investment and jobs to the region.
Potential economic activity also extends beyond the production facilities themselves. New industrial operations can require supporting services, while communities may need additional roads and public utility infrastructure as development proceeds.
Local officials and industry representatives have also raised concerns about the effects of higher property values on landowners. GeoFrame’s Cutright said property-tax rules should account for the possibility that increased valuations could make it more difficult for longtime landowners to remain on their properties.
Smackover Formation Supports Regional Lithium Production
East Texas lithium projects are tied to the Smackover Formation, which extends from Florida through several Southern states into Central Texas and contains lithium-rich brine underground.
Companies are pursuing direct lithium extraction, which uses wells to bring brine to the surface and separate lithium without relying on large evaporation ponds.
Texas rules currently require extracted brine to be reinjected into the same formation. GeoFrame CEO Bruce Cutright has raised concerns that repeated reinjection could dilute lithium concentrations and called for regulators to consider other suitable injection zones.
Environmental advocates have also raised concerns about potential groundwater impacts. EnergyX said it maintains an emergency action plan and has secured its site beyond Railroad Commission requirements.
Texas Railroad Commission Oversees Brine Production Rules
The Texas Railroad Commission oversees lithium-related brine production and received rule-making authority from the Legislature in 2023. Industry representatives are seeking clearer rules on property taxes, royalties, mineral ownership and brine reinjection.
Economic geologist Brent Elliott of the University of Texas Bureau of Economic Geology said producers need clarity on ownership, unitization and production procedures. The bureau plans to provide lawmakers with research on water rights and mineral royalties.
Texas data center water concerns have also added to broader discussions about industrial water use and infrastructure planning in Texas.
Arkansas provides a regulatory example because its lithium production operates within an established brine-production framework. Texas industry representatives have cited the state’s approach as a possible model for developing additional rules.
Lawmakers Face Mineral Rights and Royalty Questions
Mineral ownership is one of the central legal issues facing Texas lithium development. Companies and state officials must determine how existing laws apply when brine is produced specifically for lithium rather than as a byproduct of oil and gas operations.
Chris Alex, vice president of U.S. Upstream Asset Development for EnergyX, said the distinction matters because ownership of the brine can depend on why it is brought to the surface.
If brine is produced as a byproduct of oil and gas operations, Alex said it would belong to the exploration and production company. If the brine is extracted specifically to recover lithium, state law does not clearly establish who owns those mineral rights.
That distinction could affect agreements between landowners and producers. Texas currently leaves many of these decisions to landowners and companies through lease agreements.
Royalties are another issue under consideration. Elliott said the Mineral Interest Pooling Act, which can govern royalties for oil and gas rights, could provide lawmakers with a framework for addressing lithium-related mineral interests.
Property taxes also remain an issue for communities near proposed production sites. Cutright has raised concerns that homeowners could face higher property valuations if lithium development increases the value of surrounding land.
The questions extend to the division of economic benefits from mineral production. Companies need a clear legal framework for developing projects, while landowners and local communities need rules governing ownership, compensation and property values.
State lawmakers could address these issues during the 2027 legislative session. The Bureau of Economic Geology’s research is intended to provide lawmakers with additional information before decisions are made.
The timing of those discussions could also be affected by other state infrastructure concerns. Elliott said data-center development and questions about water and energy use had become major issues for voters, potentially affecting the attention given to lithium during the legislative session.
Texas reviews data center infrastructure costs as large facilities place new demands on electricity and utility planning, providing another example of the infrastructure questions facing state and local officials.
Direct Lithium Extraction Shapes East Texas Projects
Direct lithium extraction is central to East Texas projects, using wells to bring lithium-bearing brine from underground and separate the mineral without large evaporation ponds.
The process resembles aspects of oil and gas production and is subject to the Texas Railroad Commission’s brine-production authority. Environmental advocates have called for reporting requirements and emergency plans to protect groundwater.
EnergyX is testing direct lithium extraction at its Hooks facility, while GeoFrame has proposed a Mount Vernon facility capable of producing more than 83,000 metric tons of battery-grade lithium carbonate annually.
Companies must also address financing, mineral ownership, water management, reinjection, property taxes and regulatory requirements as their projects advance.
Frequently Asked Questions
What is the Texas lithium industry?
The Texas lithium industry consists of companies developing methods to recover lithium from brine found beneath parts of the state. East Texas is a major area of interest because of lithium-bearing brine within the Smackover Formation.
Where is lithium found in East Texas?
Lithium-bearing brine is found within the Smackover Formation beneath East Texas. Areas around Texarkana and Franklin County are among the locations where companies are developing or testing lithium production projects.
Which companies are developing lithium projects in Texas?
EnergyX is developing a lithium production facility in Hooks near Texarkana. Austin-based GeoFrame is pursuing a proposed production facility in Mount Vernon in Franklin County.
How is lithium extracted from East Texas brine?
Companies are pursuing direct lithium extraction, which removes lithium from brine brought to the surface from underground formations. The process differs from evaporation-pond methods used in some other lithium-producing regions.
Who regulates lithium production in Texas?
The Texas Railroad Commission oversees brine production in Texas and received rule-making authority over brine production from the Legislature in 2023. State lawmakers are also considering issues involving mineral rights, royalties, water and property taxes.
