Chevron said on Tuesday its has acquired on lease about 125,000 net acres in northeast Texas and southwest Arkansas, marking the entry of the U.S. oil major into domestic lithium production.
Demand for lithium – a key component in batteries for electric vehicles and renewable energy storage – remains strong even amid a prolonged supply glut and price weakness.
Advertisement · Scroll to continue
“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.
Chevron said it acquired leasehold acreage positions from TerraVolta Resources and East Texas Natural Resources, but did not disclose financial details of the transaction.
The company would use the direct lithium extraction to extract the element from brines produced from the subsurface.
Source: Reuters.com