Chevron has a new ambition: lithium production. And it might just be the beginning.
What’s happening:
- Chevron (NYSE: CVX) has acquired leasehold acreage positions for 125,000 acres of property in the historic Smackover Formation located in northeast Texas and southern Arkansas
Why it matters:
- This is the first time ever that Chevron has acquired a large scale lithium brine project within the United States of America
Going deeper:
- The Smackover Formation is one of the most prominent regions in the United States for large lithium brine deposits, with enough lithium to in southern Arkansas alone to fulfil all the demand for lithium in America
- Chevron acquired the land from TerraVolta Resources and East Texas Natural Resources which are both privately owned companies and also has publicly stated they have plans to use leading edge direct lithium extraction technology to bring the project into production
The intrigue:
- There is currently only one operational lithium brine project in all of America which is owned by Albemarle Corporation (NYSE: ALB)
The fine print:
- It has not been publicly disclosed what Chevron paid to acquire the properties or how much capital they will commit to bringing the project into full scale production
