Chevron has taken its first step into the lithium business with two land deals in northeastern Texas and Arkansas, becoming the second U.S. oil major to invest in producing a mineral crucial to electric vehicle batteries.
The company announced Tuesday that it had acquired two leases totaling 125,000 acres along the Smackover Formation. That formation, which spans from northeastern Texas into southwestern Arkansas, has large deposits of ancient salt water — or brine — that contains high concentrations of lithium.
Chevron’s move comes after Exxon Mobil announced in 2023 that it would begin drilling for lithium-rich brine in the same formation. Exxon plans to begin extracting lithium from the water by 2027, with the goal of becoming “a leading producer of lithium.”
President Donald Trump has called for more companies to produce critical minerals domestically as he threatens tariffs on imports of lithium, uranium and copper from China and other countries. In March, Trump issued an executive order that aims to boost domestic mineral production by directing agencies to expedite permitting and roll back regulations.
