ETNR
In the global race to secure lithium, a critical component powering electric vehicles and the energy transition, one of the most promising frontiers isn’t just in the deserts of Chile or the salt flats of Argentina. It’s right beneath the pine forests and rolling pastures of East Texas, with the region long known for its oil fields and energy-friendly policies.
Sergei Pokrovsky, CEO of East Texas Natural Resources (ETNR), was among the first to recognize the region’s untapped potential. In 2022, before the lithium land rush swept through neighboring Arkansas, Pokrovsky launched ETNR with a mission to identify, map, and secure the highest-grade lithium brine resources in Texas’s portion of the Smackover Formation, a deep geological structure rich in minerals.
“People looked to Arkansas because it has been the leading producer of bromine since the 1980s,” Pokrovsky states. “But what they overlooked is that East Texas has arguably better geology, a more favorable regulatory environment, and superior infrastructure access. And that combination is rare and extremely valuable.”
While Arkansas may be the incumbent, East Texas offers what Pokrovsky describes as ‘the clean slate advantage.’ Unlike oil, lithium is not a tradable commodity until it’s extracted from brine and processed. That means everything must be adapted or reinvented for this unique challenge, from lease structures to extraction technologies.
Most importantly, ETNR has worked on a novel type of lease agreement that protects landowners and recognizes where the true value lies: not in the brine itself but in the lithium molecules extracted from it. Pokrovsky further explains, “A barrel of brine is not a commodity in itself. It’s actually a liability until you remove the impurities, extract the lithium, and dispose of the brine. Some companies promise lithium royalties based on preproduction, which is actually misleading. We tie our royalties to the lithium extracted at the tailgate of the plant, the actual tradable product.” This approach ensures landowners receive cost-free, burden-free royalties on the end product, a model Pokrovsky believes should be industry standard.
Geology, policy, and infrastructure are converging in East Texas to make it a lithium hotspot. Truly, East Texas boasts a lesser-known advantage: better rock and higher lithium concentration in the brine.
“We’re talking about higher porosity, permeability, as well as areal predictability, the three key reservoir characteristics,” Pokrovsky says. “Porosity defines how much brine the rock can hold. Permeability dictates how easily it can be extracted. Areal predictability allows for optimized development of the play. East Texas has it all, and we’ve spent more than three years modeling those brine-bearing reservoirs in detail.” The ETNR’s team used proprietary and public geological and geophysical data to map the sweet spots, the areas where the geology, logistics, and surface infrastructure overlap to offer maximum economic viability.
With global demand for lithium expected to quadruple by 2030, ETNR is on a mission to educate landowners about being fairly compensated. For landowners in East Texas who suspect they may have lithium-rich brine beneath their feet, Pokrovsky offers simple advice: don’t sign the first lease that comes one’s way. “Understand the difference between a promise of preproduction royalties, which are significantly less attractive, and royalties on the actual lithium extracted,” he concludes. “Make sure your interests are protected. Work with people who understand the geology, economics, and the evolving state regulatory legislation.” And most importantly, partner with someone like ETNR who truly understands its full potential, science, fairness, and long-term value.
