With an eye on entering the domestic lithium sector, Chevron recently announced the acquisition of two leasehold acreage positions—the first from TerraVolta Resources and the second from East Texas Natural Resources—that will span about 125,000 acres across the Smackover Formation in southwest Arkansas and northeast Texas.
The move marks the multinational energy corporation’s first step toward establishing a commercial-scale, domestic lithium business.
“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. This opportunity builds on many of Chevron’s strengths, including subsurface resource development and value chain integration.”
Lithium is a key component supporting the trend toward electrification and can contribute to building a resilient, lower-carbon energy system that meets growing energy demand while balancing reliability and affordability.
The Smackover Formation is of particular interest because it contains a large amount of high-quality lithium-rich brine. Chevron and others plan to access the resource using direct lithium extraction, or DLE, a new technology that allows for faster, more efficient lithium production with a smaller environmental footprint than traditional extraction methods.
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