TerraVolta Announces Sale of Lithium Assets in East Texas and Arkansas

Rhea-AI Summary

TerraVolta Resources and The Energy & Minerals Group have sold their equity interests in two subsidiaries to Chevron U.S.A. Inc. The transaction includes approximately 100,000 net acres of lithium-rich leasehold positions in east Texas and southwest Arkansas, marking Chevron's entry into the domestic lithium market. The deal represents Chevron's first step toward establishing a commercial-scale lithium business in the United States. The assets are located in the Smackover Formation, which TerraVolta has strategically developed over time. The acquisition aligns with the growing demand for domestic critical minerals and supports the development of an integrated lithium supply chain in the United States.

Positive

• Chevron's entry into lithium market validates the resource potential of the assets
• Large scale acquisition of 100,000 net acres establishes significant lithium position
• Strategic location in the Smackover Formation provides access to premium lithium assets
• Transaction supports development of domestic lithium supply chain

Negative

• TerraVolta divests significant portion of its lithium assets, reducing its market presence
• Sale price and financial terms not disclosed

Insights

Energy Industry Analyst

Chevron's acquisition of 100,000 acres of lithium assets marks strategic diversification into critical minerals essential for the energy transition.

Chevron has acquired 100,000 net acres of lithium assets in east Texas and southwest Arkansas from TerraVolta Resources, marking the oil major's first significant entry into the domestic lithium market. This acquisition represents a strategic diversification for Chevron beyond its traditional oil and gas operations into critical minerals essential for the energy transition.

The transaction specifically targets assets in the Smackover Formation, which is emerging as a premium lithium brine resource in North America. Lithium extracted from this geological formation typically offers competitive advantages including potentially lower production costs compared to traditional hard rock mining and a smaller environmental footprint than some alternative sources.

This move aligns with broader industry trends as major energy companies reposition their portfolios to include critical minerals essential for energy storage and electrification. Lithium remains a cornerstone material for battery technology, with demand projections showing substantial growth driven by electric vehicle adoption and grid-scale storage requirements.

The strategic importance of this acquisition extends beyond diversification. By establishing a foothold in domestic lithium production, Chevron is addressing mounting concerns about supply chain security for critical minerals, particularly as geopolitical tensions increase scrutiny on mineral sourcing dominated by foreign producers.

For Chevron shareholders, this represents an important strategic pivot toward future-focused energy markets while maintaining the company's core expertise in resource extraction and processing. The company appears to be following a calculated approach to the energy transition by targeting upstream mineral resources rather than moving directly into manufacturing or end-user applications.

HOUSTON, June 17, 2025 /PRNewswire/ -- TerraVolta Resources, LLC ("TerraVolta" or the "Company") and its investor, The Energy & Minerals Group ("EMG"), announced that they have closed on a transaction to sell all equity interests in two subsidiaries that own certain leasehold acreage positions in east Texas and southwest Arkansas to Chevron U.S.A. Inc., a subsidiary of Chevron Corporation ("Chevron") (NYSE: CVX).

Chevron's acquisition comprises approximately 100,000 net acres, establishing a lithium resource position in the United States. The sale enables a major energy company to take a first step toward establishing a commercial-scale, domestic lithium business. 

"This transaction with one of the top energy companies in the U.S. and the world furthers the advancement of a significant portion of the resource that TerraVolta has developed," said Jamie Liang, President and CEO of TerraVolta. "There is increasing urgency to develop domestic critical minerals to unleash American energy prosperity, and TerraVolta looks forward to working with Chevron and other industry stakeholders to grow our efforts in response to this demand."

John Raymond, Founder and Executive Chairman of EMG, added, "When we entered the lithium business three years ago, we did so with the view towards developing a domestic integrated supply chain. To that end, EMG has made multiple investments in the lithium space across the lithium hard rocks and the lithium brines, which includes our investment in TerraVolta. In that regard, we applaud the TerraVolta team who has done an outstanding job of strategically constructing an industry leading presence in the Smackover Formation of Southern Arkansas and Northeast Texas. By virtue of the sale to Chevron, we are excited to see a new entrant to the basin that can help further develop this premium asset into a vital component of the domestic lithium supply chain."

About TerraVolta Resources‍

TerraVolta Resources is a U.S. critical minerals exploration and production company. Based in Houston, Texas, the Company's mission is to pioneer a more sustainable future by becoming the leading domestic producer of lithium and other critical materials. For more information, please visit www.terravolta.com.

‍About EMG‍

The Energy & Minerals Group (EMG) is a specialized natural resource focused private equity firm with current assets under management ("AUM") of approximately $13 billion as of March 31, 2025. In addition, EMG's funds and co-investments have returned approximately $12 billion to Limited Partners since inception in 2006. EMG targets equity investments of $150 million to $1 billion across the natural resource industry, which includes the extraction and processing of the critical metals and minerals to facilitate decarbonization as well as upstream and midstream energy.

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SOURCE TerraVolta Resources

FAQ

What lithium assets did Chevron (CVX) acquire from TerraVolta in 2025?

Chevron acquired approximately 100,000 net acres of lithium-rich leasehold positions in east Texas and southwest Arkansas from TerraVolta, located in the Smackover Formation.

Why is Chevron (CVX) investing in lithium assets in 2025?

Chevron is taking its first step toward establishing a commercial-scale, domestic lithium business to meet growing demand for critical minerals in the United States.

Where are the lithium assets Chevron (CVX) acquired from TerraVolta located?

The acquired lithium assets are located in the Smackover Formation, spanning east Texas and southwest Arkansas regions.

What is the significance of Chevron's (CVX) lithium acquisition in 2025?

The acquisition marks Chevron's entry into the domestic lithium market and supports the development of an integrated lithium supply chain in the United States.

How many acres did Chevron (CVX) acquire in the TerraVolta lithium deal?

Chevron acquired approximately 100,000 net acres of lithium-rich leasehold positions from TerraVolta.