Shares of Chevron Corporation (NYSE:CVX) climbed 2% after the energy major revealed its initial foray into the lithium sector with the purchase of roughly 125,000 net acres of mineral-rich land. This marks a significant step in Chevron’s efforts to diversify its energy portfolio amid growing demand for battery materials.
The acreage, located across Northeast Texas and Southwest Arkansas, includes holdings acquired from TerraVolta Resources—supported by The Energy & Minerals Group—and East Texas Natural Resources LLC. These areas are part of the lithium-abundant Smackover Formation, a geologic structure well known for its mineral potential.
Chevron announced it will apply direct lithium extraction (DLE) technology to tap into these resources. The company emphasized that this modern technique can provide faster recovery with less environmental disruption than traditional mining or evaporation-based methods.
“This move is a strategic investment in the future of energy manufacturing and will help bolster domestic supplies of critical minerals,” said Jeff Gustavson, president of Chevron New Energies.
With this acquisition, Chevron lays the groundwork for building a U.S.-based lithium production business aimed at meeting the surging need for materials used in electric vehicle batteries and large-scale energy storage systems.
The announcement comes as traditional oil and gas producers look to broaden their operations into areas vital to the global energy transition. Chevron’s lithium initiative reflects an industry-wide shift, as major players position themselves to support decarbonization efforts while leveraging their existing capabilities in resource development and infrastructure.
This expansion into critical minerals signals Chevron’s intent to play a more prominent role in clean energy supply chains, while maintaining its core strengths in the broader energy ecosystem.