Chevron Acquires Two Mining Areas to Officially Enter the Lithium Industry

Chevron Acquires Two Mining Areas to Officially Enter the Lithium Industry
 

According to recent news on Chevron's official website, its subsidiary Chevron USA announced the acquisition of two lithium-rich leased mining areas. This marks Chevron's official entry into the lithium industry.

 

 

The two mining areas span across northeastern Texas and southwestern Arkansas, covering a total area of approximately 125,000 acres. Chevron stated that the Smackover Formation in the aforementioned mining areas has attracted significant attention due to its extremely high lithium content, and this acquisition is the first step for Chevron to establish a commercial-scale lithium business.

 

Chevron said that future development will focus on utilizing Direct Lithium Extraction (DLE) technology, which is an advanced set of technologies for extracting lithium from underground brines. By deploying this emerging technology, Chevron can achieve more efficient production. Compared to traditional extraction methods, this technology has a smaller environmental impact.

 

Jeff Gustavson, President of Chevron New Energies, said, "This acquisition is a strategic investment aimed at supporting the energy manufacturing industry and expanding the supply of critical minerals in the United States. Establishing a resilient domestic lithium supply chain in the United States is crucial for maintaining the country's leading position in the energy sector and meeting the growing needs of customers. This opportunity leverages many of Chevron's strengths, including underground resource development and value chain integration."

 

Lithium is a key mineral that supports the trend of electrification, helping to build a resilient low-carbon energy system, meet the growing energy demand, and balance reliability and affordability. Developing the lithium business is one of the important directions for the transformation of oil companies.