Chevron U.S.A. Inc., a subsidiary of Chevron Corporation (NYSE: CVX), has entered the U.S. lithium market by acquiring two major leasehold acreage positions. TerraVolta Resources, backed by an affiliate of The Energy & Minerals Group (EMG), sold the first. East Texas Natural Resources (ETNR) LLC sold the second.
These deals give Chevron control over approximately 125,000 net acres of land across Northeast Texas and Southwest Arkansas. This area covers parts of the Smackover Formation, known for its lithium-rich brine. The acquisition marks Chevron’s first step into commercial-scale lithium production in the U.S.
Chevron Bets on Faster and Emissions-Free Lithium Extraction
Chevron plans to develop the acreage using Direct Lithium Extraction (DLE). This advanced process pulls lithium from subsurface brines faster and more efficiently than traditional methods. It also reduces the environmental footprint of lithium production and is a key technology for decarbonizing the energy sector.
Jeff Gustavson, president of Chevron New Energies, said,
“This acquisition represents a strategic investment to support energy manufacturing and expand U.S.-based critical mineral supplies. 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 Demand Pushes New U.S. Production
Lithium plays a key role in the shift to electric power. It powers batteries used in electric vehicles (EVs), portable electronics, energy storage, and electric tools. Manufacturers also use lithium minerals directly in ceramics and glass.
The U.S. Geological Survey, Mineral Commodity Summaries revealed that currently, Nevada hosts the only commercial-scale lithium brine operation in the U.S. A second project in Utah, which extracted lithium from magnesium waste tailings, shut down in 2024 due to low lithium prices.
Two U.S. companies still produce lithium compounds like lithium carbonate, chloride, and hydroxide. They rely on both domestic and imported sources. However, the government withheld detailed data to protect proprietary business information.
Exxon’s Lithium Plan for the Arkansas
In November 2023, ExxonMobil announced its first U.S. lithium project in southwest Arkansas, aiming to supply EV batteries under the Mobil Lithium brand. The company targets first production by 2027.
It will use traditional drilling to tap lithium-rich saltwater 10,000 feet underground and apply direct lithium extraction (DLE) to produce battery-grade lithium. The project supports U.S. energy security, manufacturing, and climate goals, marking ExxonMobil’s push into the energy transition.
Equinor Secured DOE Funding for Lithium Projects
In May 2024, Equinor partnered with Standard Lithium and bought a 45% stake in two lithium projects in Southwest Arkansas and East Texas.
Soon after, the U.S. Department of Energy (DOE) approved a $225 million grant to support the South West Arkansas (SWA) lithium project. The funding will help build a new processing facility.
In its first phase, the project plans to produce 22,500 tonnes of battery-grade lithium carbonate each year using DLE.
Chevron Aligns with the Government’s Push for Domestic Critical Minerals
On April 18, the Federal Permitting Improvement Steering Council (Permitting Council) took a major step to speed up approvals for domestic mineral production. In response to President Trump’s executive order, Immediate Measures to Increase American Mineral Production, the Council named 10 mining projects that will now benefit from a faster, more transparent federal permitting process.
These projects, targeting minerals like copper, antimony, lithium, and potash, have been granted FAST-41 status. This designation falls under a 2015 federal initiative that streamlines permitting for major infrastructure projects. The White House confirmed more projects will be added soon.
The United States has significant mineral resources but remains heavily dependent on imports for many critical minerals. Thus, the government and companies are taking significant steps to ramp up domestic production and make the nation self-sufficient in the future.
Similarly, Chevron’s lithium acquisition aligns with this national push to boost domestic mineral supplies. As demand for lithium grows and cleaner extraction methods become viable, Chevron is positioning itself as a key player in building a low-carbon, electric future.
