Chevron Joins the US Lithium Hunt

Chevron US lithium

Oil Majors Target Lithium in Smackover Formation

Chevron has officially entered the US lithium sector, joining ExxonMobil and Equinor in exploring lithium-rich brines in the Smackover formation. The oil giant acquired about 125,000 net acres in northeast Texas and southwest Arkansas, where high lithium content in briny groundwater has already attracted major interest.

The company plans to leverage its subsurface expertise to extract lithium from brine, aiming for lower costs and reduced environmental impact compared with hard rock mining or evaporation ponds. Chevron says this effort aligns with its broader strategy to support US energy leadership and build resilient domestic lithium supply chains.

Expanding Lithium Supply Amid Energy Transition

Chevron’s move mirrors a growing trend of oil companies pivoting toward critical minerals to secure positions in the energy transition. Smackover Lithium, a joint venture between Standard Lithium and Equinor, has already announced plans to produce 22,500 t/yr of lithium carbonate by 2028. Meanwhile, ExxonMobil signed a deal in November 2024 to supply up to 100,000 t of lithium carbonate to South Korea’s LG Chem, also sourced from the Smackover formation.

As demand for EV batteries accelerates, the region could become a cornerstone of the US lithium industry. Chevron’s participation underscores the convergence of oil and mining sectors, with traditional hydrocarbon firms now competing in battery materials.

Strategic Implications for US Lithium Supply

Chevron’s lithium strategy emphasizes domestic production to reduce reliance on imports and strengthen critical mineral supply chains. By applying oilfield brine extraction techniques, the company hopes to commercialize lithium with fewer environmental trade-offs.

Industry analysts believe oil companies could soon rival established lithium producers. As independent analyst Joe Lowry noted, “By early next decade, big oil and big mining will replace the likes of Albemarle at the top of the lithium world.”

The Metalnomist Commentary

Chevron’s entry into the lithium market highlights a strategic realignment of oil majors toward critical minerals. The Smackover formation is fast becoming a global lithium hotspot, and Chevron’s move strengthens US ambitions for secure, domestic supply. If successful, this strategy could reshape the balance of power in the lithium industry, positioning oil giants as major players in the battery supply chain.