Oil and gas majors are increasingly investing in direct lithium extraction (DLE) from brines—particularly in the Smackover Formation (Arkansas & East Texas) and Appalachia—as part of a broader energy diversification and decarbonization strategy. Companies like ExxonMobil, Chevron, Occidental, and Halliburton are leveraging their subsurface and fluid-handling expertise to enter the critical minerals space. These efforts are driven by surging demand for lithium, policy incentives (e.g., IRA), and the strategic need for a secure U.S. battery supply chain.

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🏗️ Project Highlights by Company

1. Halliburton / GeoFrame Energy – East Texas (Mt. Vernon)

Project: Geothermal-powered lithium extraction.
Formation: Smackover Formation.
Output Target: Up to 83,500 metric tons of lithium carbonate annually (could satisfy current entire U.S. demand).
Purpose: Model for merging geothermal, oilfield expertise, and battery metal development.

“This project could be a model for combining legacy energy skills with critical mineral development.” — phinds, Oil & Gas Leads

2. Chevron – Smackover Formation (TX & AR)

Acres Acquired: 125,000 net acres.
Partners: TerraVolta Resources and East Texas Natural Resources.
Method: Direct Lithium Extraction (DLE).
Objective: Supply lithium for EVs, grid storage, and electronics; aligns with Chevron’s “New Energies” strategy.

“From oil wells to lithium brines, Chevron is powering the electrification era—one acre at a time.” — phinds, Oil & Gas Leads

3. Occidental Petroleum (Oxy) – Arkansas & California

Project Sites: Smackover (AR) & Salton Sea (CA).
Subsidiary: TerraLithium.
Partner: Berkshire Hathaway Energy (Salton Sea pilot).
Focus: Clean lithium from brines, potential for global tech licensing.

“Occidental’s dual focus on operational expertise and strategic partnerships positions it as a significant player in the emerging DLE market.” — phinds, Oil & Gas Leads

4. ExxonMobil – Arkansas (Smackover)

Acres: 120,000 acres via acquisition of Galvanic Energy’s asset.
Facility (planned): One of the world’s largest lithium processing plants near Magnolia, AR.
Subsidiary: Saltwerx LLC.
Target Production: Up to 100,000 metric tons/year by 2027.

“We’ve been pushing for this for a decade… Now we’ve gained a lot of interest from the majors.” — Brent Wilson, CEO of Galvanic Energy

5. Appalachia (Marcellus Shale)

Discovery: High lithium content in produced water from hydraulic fracturing.
Agency: National Energy Technology Laboratory (NETL).
Potential: Could supply up to 40% of U.S. lithium demand.
Advantages: Offset water disposal costs; reduce import reliance.

“Produced water from hydraulic fracturing in Appalachia contains high concentrations of lithium, which can meet up to 40% of current US demand.” — phinds, Oil & Gas Leads

🗣️ Industry & Technology Quotes

Exxon CEO Darren Woods:

“We’ve been looking at lithium extraction for quite some time… we can bring on a much-needed resource — lithium — one that’s predicted to go short.”
Chevron CEO Mike Wirth (to E&E News):

“We regularly assess technology that can help the company operate more efficiently, lower carbon intensity and launch viable new businesses.”
Standard Lithium CEO Robert Mintak:

“The attention [from oil & gas] is a validation of what we’re doing… it’s in their backyard.”
UT Austin’s Brent Elliot:

“On the oil and gas side, they were already producing it. That water is already coming out of the ground.”

The oil and gas industry is undergoing a strategic transformation, with lithium extraction emerging as a natural extension of its core competencies. Leveraging decades of expertise in fluid management, subsurface engineering, and large-scale infrastructure, companies like Chevron, Occidental, ExxonMobil, and Halliburton are positioning themselves at the forefront of a new domestic lithium supply chain. Their entry into direct lithium extraction (DLE) not only strengthens U.S. energy security but also aligns with global decarbonization goals and growing demand for battery materials.

This shift reflects more than just diversification—it signals the oil & gas sector’s intent to remain essential in the energy transition. With substantial investments, strategic partnerships, and supportive policy tailwinds, lithium-from-brine projects could redefine how legacy energy firms create value in a low-carbon future.