Chevron U.S.A. Inc., a subsidiary of Chevron Corporation, has acquired approximately 125,000 net acres across Northeast Texas and Southwest Arkansas, marking its entry into the U.S. lithium sector. The leasehold positions, secured from TerraVolta Resources (backed by The Energy & Minerals Group) and East Texas Natural Resources, target the Smackover Formation—a geologic unit increasingly recognized for its high-lithium brine potential. This move signals Chevron’s ambition to become a major domestic supplier of lithium, a critical mineral for electric vehicle batteries and energy storage, at a time when the U.S. is striving to build resilient, homegrown supply chains for the energy transition.
Smackover Formation: America’s New Lithium Frontier
The Smackover Formation, stretching across the Gulf Coast and underlying parts of Texas and Arkansas, has emerged as one of the most promising lithium brine resources in North America. Recent exploration has shown that the formation’s deep carbonate reservoirs contain lithium concentrations comparable to those found in South America’s “lithium triangle.” Several companies, including Standard Lithium and ExxonMobil, are already piloting extraction projects in the region, highlighting its growing strategic importance.
Chevron’s entry is particularly notable given its expertise in subsurface resource development and large-scale project execution. The company intends to deploy direct lithium extraction (DLE) technology—an advanced process that uses selective sorbents, membranes, or ion-exchange systems to extract lithium from brines. DLE offers faster recovery, higher yields, and a significantly smaller environmental footprint than traditional evaporation ponds, which have been criticized for their water use and land disturbance.
Strategic Shift and U.S. Policy Support
This acquisition marks Chevron’s first step toward establishing a commercial-scale lithium business in the United States. The company’s strategy aligns with federal and state policy priorities to reduce reliance on imported critical minerals and support the domestic EV and battery supply chain. The Biden administration and U.S. Department of Energy have both highlighted the need for new domestic lithium sources, offering grants and loan guarantees for qualifying projects.
Chevron’s New Energies division, which leads the company’s low-carbon and new energy investments, plans to leverage its existing value chain integration and operational expertise to accelerate lithium production. The company aims to supply U.S. manufacturers with domestic lithium, supporting both energy security and the country’s decarbonization goals.
Competitive Landscape and Technology Race
Chevron’s move comes amid a surge of investment and innovation in U.S. lithium extraction. The Smackover region has become a focal point for companies like Standard Lithium, which is piloting DLE at its Lanxess project, and ExxonMobil, which acquired 120,000 acres in Arkansas in 2023 to launch its own lithium business. With global lithium demand projected to triple by 2030, driven by EVs and grid storage, the U.S. is racing to secure a reliable, low-impact domestic supply.
While DLE technology remains in the early stages of commercialization, it is widely regarded as the future of brine-based lithium extraction. Chevron’s scale, technical resources, and financial strength could accelerate the deployment of DLE at commercial scale, potentially making the U.S. a significant player in global lithium markets.
Lithium Market Overview
Lithium is the cornerstone of modern battery technology, essential for electric vehicles, energy storage, and portable electronics. The U.S. currently imports most of its lithium, with domestic production accounting for less than 2% of global supply. As global automakers and battery manufacturers ramp up North American production, demand for domestic lithium is set to soar. The Smackover Formation could become a critical pillar of U.S. supply, with DLE technology offering a pathway to large-scale, low-impact production. Chevron’s entry into the sector adds significant momentum to America’s bid for lithium independence.
Company Background and Market Context
Chevron Corporation is one of the world’s largest integrated energy companies, with a growing portfolio in renewable fuels, hydrogen, carbon capture, and now critical minerals. The company’s New Energies division is tasked with expanding Chevron’s footprint in emerging energy sectors and supporting the energy transition.
TerraVolta Resources and East Texas Natural Resources are private companies focused on mineral and resource development in the U.S. Gulf Coast, with TerraVolta backed by The Energy & Minerals Group, a leading private equity investor in energy and minerals.
