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Introduction
The global energy transition is not just altering how we produce and consume energy – it is also redrawing the boundaries between industries. Perhaps nowhere is this more evident than in the increasing interest of oil and gas companies in the critical minerals sector, particularly in lithium extraction. As the demand for critical minerals grows, energy majors are exploring how their existing skills and resources can be leveraged in this area. This chapter explores this evolving trend, its drivers, and its implications for both sectors.
What Are Oil and Gas Companies Saying and Doing?
A number of major oil and gas companies have already taken steps into the critical minerals sector. At this stage, their interest appears primarily focused on lithium and Direct Lithium Extraction (or "DLE") technologies. DLE is designed to extract lithium from brine sources faster, more efficiently, and with less environmental impact than the traditional evaporation and processing method, by bypassing the evaporation step. Instead, it uses chemical, physical, or biological processes to selectively remove lithium ions from brines.
The energy companies entering this space include some of the world's largest:
- ExxonMobil has stated that it aims to become a leading lithium supplier in the US by 2030, using DLE technology to extract lithium from deep brine reservoirs in the Smackover Formation in Southern Arkansas. The project is targeting commercial production by 2028.
- Equinor has partnered with Standard Lithium to develop subsurface lithium resources, also in the Smackover Formation. It has also invested in France's Lithium de France to develop DLE and geothermal projects in France.
- Chevron recently entered the US domestic lithium sector, announcing its acquisition of two acreage positions in the Smackover Formation on 17 June 2025.
- Occidental Petroleum is pursuing lithium extraction through a joint venture with BHE Renewables, a Berkshire Hathaway company. This venture aims to extract lithium from geothermal brines in California.
- SLB (previously Schlumberger), one of the major oilfield services companies, is developing a DLE system in Nevada, with commercial production projected for 2027.
This trend is not just limited to the US. National oil companies from around the globe have also commenced investing in DLE technology and processes.
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