Chevron announced its entry into lithium production by acquiring mining rights in the Smackover Formation across Arkansas and Texas, marking a strategic step into critical mineral sourcing for electric vehicle (EV) batteries.
The U.S.-based oil major has secured approximately 125,000 net acres, equivalent to 50,000 hectares, through agreements with TerraVolta Resources and East Texas Natural Resources. Chevron plans to deploy direct lithium extraction (DLE) technology at these sites to recover lithium from underground brine deposits.
“This acquisition represents a strategic investment to support energy manufacturing and expand U.S.-based critical mineral supplies,” said Jeff Gustavson, President of Chevron New Energies. “Establishing domestic and resilient lithium supply chains is essential not only to maintaining U.S. energy leadership but also to meeting the growing demand from customers.”
Chevron joins other major oil and gas firms in pivoting toward the lithium market amid rising demand from automakers and battery manufacturers. Its move follows ExxonMobil’s 2023 entry into lithium, with plans to begin production in Arkansas by 2027. The U.S. Geological Survey recently estimated that Southwest Arkansas alone contains 5 to 19 million tonnes of lithium, potentially making the region a key global source.
While Chevron is two years behind ExxonMobil in entering the lithium sector, its extensive expertise in geological and resource development may offer a competitive edge. The company says the initiative aligns with its strategy to diversify its energy portfolio and contribute to the energy transition.