Chevron USA, a subsidiary of Chevron Corporation (NYSE: CVX), became on Tuesday the latest oil major to enter the lithium market in the United States with the acquisition of lease rights to about 125,000 net acres in northeast Texas and southwest Arkansas.The company secured the lithium-rich acreage from TerraVolta Resources and East Texas Natural Resources, but did not disclose financial details.“This acquisition represents a strategic investment to support energy manufacturing and expand US-based critical mineral supplies,” Chevron New Energies president Jeff Gustavson said in a statement.Chevron follows the lead of other major oil companies, such as ExxonMobil (NYSE: XOM), which entered the lithium space last year with a $100 million purchase of 485 square km of brine-rich acreage in the Smackover Formation from Galvanic Energy. ExxonMobil has since launched a pilot project and signed a preliminary agreement to supply lithium to SK On, a South Korean battery maker building plants in the US to serve Hyundai and Ford.RANKED: World’s top 10 biggest lithium operationsOccidental Petroleum is testing a joint venture with a Berkshire Hathaway (NYSE: BRK.B) unit to extract battery-grade lithium from geothermal brine at 10 power plants in California. Norway’s Equinor has partnered with Standard Lithium (TSX-V: SLI), which began operating a commercial-scale demonstration plant in Arkansas in December.Brines preferredThese oil majors are leveraging their core expertise in subsurface exploration, drilling, and chemical processing to focus on direct lithium extraction (DLE) from brines, which shares operational similarities to conventional oil production.DLE offers an alternative to traditional evaporation ponds, which remain the dominant technology in Chile, the world’s second-largest lithium producer.Arcadium Lithium, acquired by Rio Tinto (ASX, LON: RIO) earlier this year, was the only company outside China with a commercial DLE operation, in Argentina’s Hombre Muerto region. Most brine operators, such as Albemarle (NYSE: ALB) and SQM (NYSE: SQM), still rely on evaporation methods.One of the sites in Arkansas’ Columbia County where ExxonMobil plans to extract lithium from brine reservoirs about 10,000 feet underground. (Image courtesy of ExxonMobil.)Oil fields repurposed for lithium extraction are a growing trend. In Alberta, Canada, E3 Lithium (TSX-V: ETL; US-OTC: EEMMF) is advancing its $2.5 billion Clearwater project, targeting depleted wells in the Leduc formation. A recent prefeasibility study estimates production of 32,250 tonnes annually of lithium hydroxide monohydrate for 50 years. Imperial Oil (TSX: IMO), ExxonMobil’s Canadian arm, has invested C$6.4 million ($4.7M) in E3 for an equity stake of 4.3%Canada’s Volt Lithium (TSX-V: VLT) is deploying its proprietary DLE technology in two of the largest oil-producing basins in the US — Permian in Texas and Bakken in North Dakota. The junior says it processes 19 million barrels of lithium-rich water daily and aims to become one of North America’s first commercial producers of lithium from oilfield brine.As energy giants pivot to green metals, their capital and expertise could fast-track the development of domestic lithium supply, offering a boost to a mining sector still reeling from investor pullback after recent price declines.
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