Gradiant to build lithium production plant in Pennsylvania’s Marcellus Shale Formation

Water and resource recovery company Gradiant announced Tuesday that it will design and build a commercial lithium production facility in Montrose, Susquehanna County, within the Marcellus Shale Formation of Pennsylvania.

The site, the company said, is the world’s first to extract, concentrate and convert (EC²) lithium in a fully integrated, end-to-end process from oilfield produced water.

Gradiant’s wholly owned lithium business, alkaLi, owns and operates the Pennsylvania facility—including equipment, land, water and mineral rights, and permits. This vertically integrated model, it said, could secure long-term US lithium supply while avoiding the permitting and ownership delays.

This announcement builds on last year’s launch of alkaLi’s EC² platform, which Gradiant said guarantees a minimum 95% lithium recovery at customer sites—empowering producers to deliver battery-grade lithium carbonate in a more efficient, cost effective and sustainable environment.

Currently in testing, the system has already proven 97% lithium recovery from produced water and 99.5% purity for battery-grade lithium carbonate, Gradiant said.

“We now have a fully operational lithium production asset in the US that proves what EC² can deliver,” Gradiant CEO Anurag Bajpayee said in a news release.

According to the company, it has a multi-year offtake agreement to supply up to 5,000 metric tonnes annually of battery-grade lithium carbonate to a US lithium-ion battery manufacturer for electric vehicles and energy storage systems.

“This isn’t a concept—it’s a live facility demonstrating that clean, domestic lithium production is both viable and scalable,” Bajpayee added. “Our goal isn’t to compete with customers, but to empower them—and the broader industry—to meet surging demand for battery-grade lithium and accelerate the clean energy transition.

“This strategic investment in the Marcellus Shale, which could supply 50% of US lithium demand, validates the maturity of alkaLi’s technology and secures a long-term domestic supply.”

The company said commercial operations are on track for early 2026.