Add Chevron Corp. to the list of major energy firms entering the lithium mining industry in the Smackover Formation of southern Arkansas.
The Houston-based firm announced Tuesday it had entered the U.S. lithium extraction sector with the acquisition of nearly 125,000 net acres involving two deals. One of the acquisitions was from TerraVolta Resources and the other was from East Texas Natural Resources.
The estimated leasehold position includes ~125,000 net acres and is situated across regions where the Smackover Formation is present, specifically spanning Northeast Texas and Southwest Arkansas. This formation is of particular interest due to its notably high lithium content and marks Chevron’s first step toward establishing a commercial-scale, domestic lithium business.
Future development will aim to utilize the direct lithium extraction (DLE) process, a set of advanced technologies employed to extract lithium from brines produced from the subsurface. Chevron seeks to deploy this emerging technology, which allows for faster and more efficient production and is expected to have a smaller environmental footprint compared to traditional extraction methods.
“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.
