Chevron U.S.A. has entered the domestic lithium market by acquiring 125,000 net acres in Texas and Arkansas, targeting the lithium-rich Smackover Formation. Using direct lithium extraction, Chevron aims to build a U.S.-based supply chain, supporting clean energy goals while leveraging its subsurface expertise to meet rising demand for critical minerals.
Chevron U.S.A. Inc., a subsidiary of Chevron Corporation, has announced its strategic entry into the domestic lithium sector through the acquisition of two leasehold acreage positions. The first position was acquired from TerraVolta Resources, backed by an affiliate of The Energy & Minerals Group (EMG), and the second from East Texas Natural Resources (ETNR) LLC. Combined, these acquisitions secure an estimated 125,000 net acres of leasehold across areas underlain by the Smackover Formation, a geologic unit spanning Northeast Texas and Southwest Arkansas that is noted for its high lithium concentrations.
This move marks Chevron’s initial venture into establishing a commercial-scale lithium operation in the United States. The company plans to utilize direct lithium extraction (DLE) technologies for this project. DLE involves advanced techniques to recover lithium from brine solutions sourced from underground formations. Compared to conventional mining or evaporation pond methods, DLE is known for its faster extraction rates, greater efficiency, and significantly reduced environmental impact.
Chevron’s investment in lithium aligns with its broader strategy of supporting domestic energy production while contributing to the development of a secure and resilient U.S. critical minerals supply chain. Jeff Gustavson, President of Chevron New Energies, emphasized the importance of this acquisition, stating, “This investment supports our commitment to energy manufacturing and strengthens the domestic supply of critical minerals. Building resilient lithium supply chains within the U.S. is vital for maintaining national energy leadership and responding to increasing demand.”
Gustavson further highlighted that this opportunity leverages Chevron’s established expertise in subsurface resource development and its capabilities in integrating operations across the value chain. These competencies are expected to play a crucial role in the success of Chevron’s lithium initiatives.
Lithium is essential to the energy transition, especially as global electrification accelerates. It is a critical component in the manufacture of rechargeable batteries used in electric vehicles, grid storage, and portable electronics. By investing in domestic lithium production, Chevron is aiming to contribute to the creation of a more secure, reliable, and low-carbon energy infrastructure in the U.S.
This development reflects Chevron’s recognition of the evolving energy landscape and its commitment to supporting solutions that balance growing energy demands with environmental responsibility and affordability. As the company expands its focus beyond traditional oil and gas, it aims to play a leading role in enabling cleaner, more sustainable sources of energy through strategic investments in technologies like DLE and critical minerals such as lithium.
