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Home » News » Chevron’s Lithium Spark: Igniting U.S. Energy Security

Chevron’s Lithium Spark: Igniting U.S. Energy Security

Powering the Future: Chevron’s Strategic Leap into Lithium Extraction

Editorial Team (ET)June 19, 2025



In a strategic leap that’s turning heads in the energy sector, Chevron U.S.A. Inc., a subsidiary of Chevron Corporation (NYSE: CVX), announced on June 17, 2025, its entry into the domestic lithium market with the acquisition of two substantial leasehold acreage positions. This move, targeting approximately 125,000 net acres across Northeast Texas and Southwest Arkansas, positions Chevron to tap into the lithium-rich Smackover Formation, a geological hotspot primed for critical mineral extraction. With a confident stride into the electrification era, Chevron is leveraging its subsurface expertise to bolster U.S. energy security while eyeing a slice of the booming lithium market. Here’s why this pivot is a game-changer—and why it’s more than just another day at the pump for the oil giant.

A Strategic Stake in the Smackover Formation

Chevron’s acquisition, finalized on June 17, 2025, includes acreage from TerraVolta Resources, backed by an affiliate of The Energy & Minerals Group (EMG), and East Texas Natural Resources (ETNR) LLC. Spanning regions where the Smackover Formation thrives, these 125,000 net acres mark Chevron’s first foray into establishing a commercial-scale lithium business in the United States. The Smackover, known for its high lithium content, is a geological gem that’s also caught the eye of competitors like Exxon Mobil, which announced similar ambitions in 2023. Chevron’s move signals a broader trend among oil majors diversifying into critical minerals to power the electrification revolution.

Jeff Gustavson, president of Chevron New Energies, didn’t mince words about the acquisition’s significance. “This acquisition represents a strategic investment to support energy manufacturing and expand U.S.-based critical mineral supplies,” he said. “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.” Gustavson’s statement underscores Chevron’s intent to harness its subsurface and drilling prowess to meet the surging demand for lithium, a linchpin for batteries in electric vehicles and renewable energy storage.

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