Chevron Corporation has entered the domestic lithium sector with the acquisition of two key leasehold acreage positions, marking its first step toward establishing a commercial-scale lithium business in the United States.
The newly acquired acreage—totalling approximately 125,000 net acres—is located in the lithium-rich Smackover Formation spanning northeast Texas and southwest Arkansas. The leases were obtained from TerraVolta Resources, backed by The Energy & Minerals Group (EMG), and East Texas Natural Resources (ETNR) LLC.
Chevron plans to employ direct lithium extraction (DLE) technologies, which enable efficient lithium recovery from subsurface brines while minimising environmental impact. This move signals Chevron’s commitment to building a domestic lithium supply chain critical for battery manufacturing and electrification initiatives.
Jeff Gustavson, president of Chevron New Energies, described the acquisition as a strategic investment aligned with the company’s long-term ambition to meet rising customer demand while enhancing U.S. energy resilience. “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 plays a vital role in decarbonising transportation and supporting the global shift to lower carbon energy systems. Chevron’s entry into the lithium market complements its broader efforts to diversify into new energies, including hydrogen, carbon capture, and renewable fuels, as part of its energy transition strategy.
This development underscores a broader trend among traditional oil and gas majors pivoting towards critical minerals essential to the energy transition. With global demand for lithium accelerating—particularly for electric vehicles and grid storage—domestic production is increasingly seen as a matter of national importance for economic and energy security.
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