(BOE Report) – Chevron said on Tuesday its has acquired on lease about 125,000 net acres in northeast Texas and southwest Arkansas, marking the entry of the U.S. oil major into domestic lithium production.
Energy giants, including Exxon Mobil, have been looking to leverage their expertise in drilling and brine processing to enter the lithium market and support the energy transition.
Demand for lithium – a key component in batteries for electric vehicles and renewable energy storage – remains strong even amid a prolonged supply glut and price weakness.
“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.
Chevron said it acquired leasehold acreage positions from TerraVolta Resources and East Texas Natural Resources, but did not disclose financial details of the transaction.
The company would use the direct lithium extraction to extract the element from brines produced from the subsurface.
(Reporting by Arunima Kumar and Vallari Srivastava in Bengaluru; Editing by Arun Koyyur)
