The company recently raised £7mln, which will cover the US$3m capital cost of the new plant.
Known as IO#8, the new plant is in a different part of Oklahoma from its four existing sites, will take between six-seven months to build and is scheduled to be in production in the first half of 2020.
Tom Becker, the chief executive, said: “Through IO#8 we now have active working agreements with three different brine suppliers.
“It is encouraging to report that companies in the oil and gas industry are finding value in partnering with Iofina and utilising our IOsorb technology to remove iodine from their brine stream.”
Iofina’s IOsorb technology extracts iodine from the waste brine produced by oil and gas wells.