Overview

• Chevron acquired two leasehold positions totaling about 125,000 net acres across north-east Texas and south-west Arkansas from TerraVolta Resources and East Texas Natural Resources.
• The transaction, which transferred all equity interests in two subsidiaries to Chevron, marks the company’s first venture into the domestic lithium sector.
• Industry estimates place the Smackover Formation’s lithium content between 5 million and 19 million tons, enough to meet projected global battery demand through 2030.
• Chevron New Energies president Jeff Gustavson described the purchase as a strategic investment to support energy manufacturing and expand U.S. critical mineral supplies.
• Meanwhile, ExxonMobil is heading to an Arkansas Oil and Gas Commission hearing on June 23 to seek approval for a 2.5% royalty rate on its 56,000-acre Pine Unit lithium project.