The company said it will buy two leasehold acreage positions, spanning about 125,000 acres.

Chevron (CVX) said on Tuesday that it will acquire acreages in the lithium-filled Smackover formation in the U.S., joining peers such as Exxon Mobil amid efforts to boost domestic production of the metal used in electric vehicle batteries.

The company said it will buy two leasehold acreage positions, spanning about 125,000 acres. One of them belongs to an affiliate of The Energy & Minerals Group (EMG), and the other one to East Texas Natural Resources.

The Smackover formation, which spans between Arkansas and Texas, has millions of tons worth of lithium deposits, enough to cover the present domestic lithium consumption, according to United States Geological Survey data. Oil majors Exxon Mobil and Equinor have already forayed into the region, with the former expecting to begin production by 2027.

Equinor, with its joint venture partner Standard Lithium, aims to produce 22,500 tonnes annually of battery-grade lithium carbonate from their Southwest Arkansas Project by 2028.

“This acquisition represents a strategic investment to support energy manufacturing and expand U.S.-based critical mineral supplies,” said Jeff Gustavson, president of Chevron New Energies.

Chevron, whose shares rose 1.9% on Tuesday, aims to deploy the direct lithium extraction (DLE) process, which can extract lithium from subsurface brines.

The technology aims to mitigate the environmental impact of hard rock lithium mining, as well as another technique that requires freshwater ponds during the extraction process.

The second-biggest U.S. energy firm’s push into lithium comes after the U.S. Senate unveiled a new version of Donald Trump’s signature tax bill that will eliminate a $7,500 credit for electric vehicle purchases, 180 days after the bill becomes law.

Retail sentiment on Stocktwits was ‘extremely bullish’ (80/100), while retail chatter was ‘extremely high.’

CVX’s Sentiment Meter and Message Volume as of 02:18 a.m. ET on June 18, 2025 | Source: Stocktwits

Chevron stock has gained 2.3% this year but is up 6.7% over the past month amid a rise in oil prices due to the ongoing conflict between Iran and Israel.

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