Chevron Enters Lithium Market
Chevron U.S.A. Inc., a subsidiary of Chevron Corporation, announced last June the acquisition of two areas totaling approximately 50,585 hectares in northeast Texas and southwest Arkansas for lithium exploration. The areas are located in regions where the Smackover formation is present and mark Chevron’s first step toward establishing a commercial-scale domestic lithium business.
The discovery of lithium in the Smackover Formation, through sample analysis using artificial intelligence, revealed significant potential for the supply of the mineral, crucial for the manufacture of electric car batteries and other energy storage technologies.
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.
