**Chevron Joins Oil Majors in U.S. Lithium Production Push**
Chevron USA, a subsidiary of Chevron Corporation (NYSE: CVX), has recently made a significant move into the lithium market in the United States. On Tuesday, the company announced its acquisition of lease rights for approximately 125,000 net acres located in northeast Texas and southwest Arkansas. The lithium-rich land was secured from TerraVolta Resources and East Texas Natural Resources, although the financial details of the transaction were not disclosed.
According to Jeff Gustavson, president of Chevron New Energies, “This acquisition represents a strategic investment to support energy manufacturing and expand U.S.-based critical mineral supplies.”
Chevron’s entry into the lithium sector follows that of other major oil companies. For instance, ExxonMobil (NYSE: XOM) ventured into lithium last year with a $100 million acquisition of 485 square kilometers of brine-rich land in the Smackover Formation from Galvanic Energy. Since then, ExxonMobil has initiated a pilot project and signed a preliminary agreement to supply lithium to SK On, a South Korean battery manufacturer establishing plants in the U.S. to support Hyundai and Ford.
Occidental Petroleum is also exploring lithium extraction through a joint venture with a Berkshire Hathaway (NYSE: BRK.B) unit, focusing on producing battery-grade lithium from geothermal brine at ten power plants in California. Additionally, Norway’s Equinor has teamed up with Standard Lithium (TSX-V: SLI), which began operating a commercial-scale demonstration plant in Arkansas in December.
These oil giants are utilizing their expertise in subsurface exploration, drilling, and chemical processing to concentrate on direct lithium extraction (DLE) from brines, a method that shares operational similarities with traditional oil production. DLE presents an alternative to conventional evaporation ponds, which continue to be the primary technology used in Chile, the world’s second-largest lithium producer.
Rio Tinto (ASX, LON: RIO) recently acquired Arcadium Lithium, the only company outside of China with a commercial DLE operation, located in Argentina’s Hombre Muerto region. Most brine operators, like Albemarle (NYSE: ALB) and SQM (NYSE: SQM), still rely on evaporation methods for extraction.
The trend of repurposing oil fields for lithium extraction is gaining traction. In Alberta, Canada, E3 Lithium (TSX-V: ETL; US-OTC: EEMMF) is advancing its $2.5 billion Clearwater project, which targets depleted wells in the Leduc formation. A recent prefeasibility study estimates an annual production of 32,250 tonnes of lithium hydroxide monohydrate over a span of 50 years. Imperial Oil (TSX: IMO), ExxonMobil’s Canadian subsidiary, has invested C$6.4 million ($4.7 million) in E3 for a 4.3% equity stake.
As energy giants shift their focus toward green metals, their capital and expertise could accelerate the development of domestic lithium supplies, providing a much-needed boost to a mining sector that has been struggling with investor pullback following recent price declines.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/chevron-expands-into-us-lithium-production-with-new-acquisition/
