Chevron acquires lithium leasehold acreage in US
Chevron U.S.A., a subsidiary of Chevron, has entered the domestic lithium market by acquiring two leasehold acreage positions known for their high lithium content.
The acquisition marks Chevron’s inaugural venture into the lithium sector.
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The initial acquisition is from TerraVolta Resources, backed by an investor linked to the Energy & Minerals Group (EMG), while the subsequent one involves East Texas Natural Resources (ETNR).
The acquired acreage, estimated at around 125,000 net acres, is located in areas where the Smackover Formation is present, specifically spanning north-east Texas and south-west Arkansas.
This geological formation is renowned for its significant lithium content, positioning Chevron to establish a commercial-scale domestic lithium operation.
Chevron New Energies president Jeff Gustavson said: “This acquisition represents a strategic investment to support energy manufacturing and expand US-based critical mineral supplies.
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By GlobalData“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. This opportunity builds on many of Chevron’s strengths including subsurface resource development and value chain integration.”
Chevron plans to employ the direct lithium extraction (DLE) process for future development.
This advanced technology is designed to extract lithium from brines produced from the subsurface, offering a more efficient production method with a potentially smaller environmental footprint than traditional extraction methods.
TerraVolta president and CEO Jamie Liang said: “This transaction with one of the top energy companies in the US and the world furthers the advancement of a significant portion of the resource that TerraVolta has developed.
“There is increasing urgency to develop domestic critical minerals to unleash American energy prosperity, and TerraVolta looks forward to working with Chevron and other industry stakeholders to grow our efforts in response to this demand.”
The transaction between TerraVolta, its investor EMG and Chevron has been finalised, transferring all equity interests in two subsidiaries that own the leasehold acreage positions to Chevron.
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