Chevron Corporation (NYSE:CVX, ETR:CHV) is getting into the lithium business with the acquisition of two leasehold acreage positions in Texas and Arkansas.
The move follows ExxonMobil’s efforts to establish a domestic lithium business.
Chevron’s deal includes about 125,000 net acres across areas underlain by the Smackover Formation, a geologic region known for its high lithium content.
The acreage was acquired from TerraVolta Resource. Financial terms of the transaction were not disclosed.
The move marks Chevron’s first step toward commercial-scale lithium production, with plans to develop the resource using direct lithium extraction (DLE) technology.
“This acquisition represents a strategic investment to support energy manufacturing and expand US-based critical mineral supplies,” said Jeff Gustavson, president of Chevron New Energies in a statement. “Establishing domestic and resilient lithium supply chains is essential not only to maintaining US energy leadership but also to meeting the growing demand from customers.”
The oil major is positioning itself to play a role in the growing electrification of the energy system. Lithium is a key component in rechargeable batteries used in electric vehicles, grid storage and portable electronics.
Shares of Chevron gained a little over 2% in New York on Tuesday morning.