"The Board's approval of the final investment decision for our Arkansas bromine facility marks a major milestone in TETRA's forty-five-year history," said Brady Murphy, President and Chief Executive Officer. "This investment will secure a long-term, low-cost domestic supply of elemental bromine – the critical feedstock for our deepwater completion fluids and TETRA energy storage electrolyte products. By becoming vertically integrated, we would achieve bromine costs consistent with a fully integrated solution and provide long-term U.S.-based supply security in a highly concentrated market. The Evergreen Project positions us to meet accelerating demand for these products through 2030 and beyond." 

Strategic Rationale

The global bromine market is estimated at approximately $2.3 billion in 2026 and is projected to grow at a compound annual growth rate of 5.5% through 2033 (1), driven primarily by electrification trends, rising demand for deepwater, high-density completion fluids, and growing energy storage solutions. Currently, over 50% of global bromine supply originates in the Middle East (2), where ongoing geopolitical concerns have heightened focus on supply security.

TETRA owns mineral rights to approximately 40,000 acres of brine leases in Southwest Arkansas, which contain significant bromine resources, including 744 ktons of proven and probable bromine reserves in the Evergreen Unit and measured and indicated bromine resources of 3.57 million tons across all TETRA acreage.  TETRA has decided to use brine supplied by its Evergreen Unit as feed brine for the bromine production facility start-up, placing the project timeline entirely within TETRA's control and maximizing the significant capital and operating expenditure synergies planned for future lithium and magnesium facilities and production.

Initial bromine production volumes for the Evergreen Project's bromine facility are expected to be 25% above the Company's long-term third-party supply agreement. Over time, the Company plans to double initial production rates to reach the bromine facility's nameplate capacity. This investment would allow TETRA to minimize third-party purchases of elemental bromine, reducing the Company's reliance on external suppliers and providing greater supply chain certainty.

Project Details

Key highlights of the Evergreen Project include the following:

  • Net Present Value ("NPV") The vertically integrated production case is expected to generate a bromine business NPV of $607 million, using a 10% discount rate, inclusive of approximately $220 million in remaining capital expenditures. Required capital expenditures will be funded over the next two years from a combination of cash from operations, credit facility borrowings and other financing sources.  The estimated NPV of our bromine business has been calculated using management's estimates, which update the economics contained in the Company's Definitive Feasibility Study dated September 22, 2025, and include updated inputs for anticipated costs and timeline of construction as well as future expectations regarding bromine demand and sales prices.  These estimates reflect management's good faith estimate of potential return based on currently available information but are subject to change over time.  See "Forward Looking Statements" further in this press release.



     
  • Timeline: The facility is expected to commence first production in early 2028, consistent with the Company's ONE TETRA 2030 strategic targets.



     
  • Supply Security: Secures TETRA's bromine demand, which is forecast to increase by over 50% by 2030, and reduces the need for higher-cost third-party bromine purchases.