Japan PPI inflation slips to 11-mth low in July
Investing.com -- Chevron Corporation (NYSE:CVX) stock rose 2% following the company’s announcement of its first strategic move into the lithium business through the acquisition of approximately 125,000 net acres of leasehold positions.
The oil giant’s U.S. subsidiary acquired acreage from TerraVolta Resources, backed by The Energy & Minerals Group, and East Texas Natural Resources LLC. The properties, located across Northeast Texas and Southwest Arkansas, contain the Smackover Formation, which is known for its high lithium content.
Chevron plans to utilize direct lithium extraction technology to develop these assets, which the company says offers faster, more efficient production with a potentially smaller environmental footprint compared to traditional methods.
"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, in the announcement.
The move marks Chevron’s initial step toward establishing a commercial-scale domestic lithium business, positioning the company to participate in the growing market for lithium, a critical component in batteries for electric vehicles and energy storage systems.
This diversification comes as major energy companies seek to expand their portfolios beyond traditional oil and gas operations, targeting materials essential for the energy transition while leveraging their existing expertise in resource development.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.