When Enverus Intelligence® Research mapped activity in the Smackover last fall (Figure 1), the takeaway was clear: the rock is real, but commercial, financeable projects depend on direct lithium extraction (DLE). Our Energy Transition 3Q25 Market Outlook underscored why bankability matters as much as geology for U.S. brine lithium. Now we’re seeing momentum build as E3 Lithium pursues offtake agreements to advance commercialization, and exploration and production companies expand their footprints in the Smackover region with a focus on DLE exploration.
Fast forward to early 2026 and CVX has secured 135,000 acres of lithium-bearing brine rights across northeast Texas and southwest Arkansas. The leasehold was assembled through packages from TerraVolta Resources and East Texas Natural Resources, and CVX has been explicit about targeting DLE on Smackover brines.
After the Trump administration announced a $12 billion critical minerals reserve, XOM also increased DLE spending, amassing more than 300,000 net acres in Arkansas and producing battery-grade lithium at a pilot facility. Smackover Lithium, a joint venture between SLI and EQNR, is advancing its southwest Arkansas project, with a definitive feasibility study outlining 22,500 tonnes/year of lithium carbonate over 20 years and potential expansion across the Texas line. The Smackover is shifting from a curiosity to a competitive basin, and 2026 is shaping up as a derisking year defined by pilots, offtakes and JV structures.
This blog offers just a glimpse of the powerful analysis Energy Transition Research delivers on the trending themes. Don’t miss the full picture.
Research Highlights
- Unpacking Power Generation Trends – NRG Portfolio Deep Dive – We demonstrate how the new power generation table in Enverus PRISM® provides an overview of NRG’s portfolio and its recent asset performance.
- Talen Energy – More Deals, More Upside – We examine how TLN’s acquisition of Energy Capital Partners’ portfolio affects our view of NAV and the impact on its share price.
- Energy Transition 3Q25 Market Outlook – The Great Acceleration – This report examines the key themes expected to shape 3Q25 earnings across the energy transition and power sectors.
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DID YOU KNOW?
A plant producing 22,500 tonnes/yr of lithium carbonate equivalent can supply enough material for more than 400,000 electric vehicle batteries annually, depending on the size of the battery packs.
Key Takeaways
DLE is the gatekeeper for Smackover success.
The geology is proven, but only direct lithium extraction makes projects commercial and bankable. Financing, pilots and offtake agreements matter as much as the rock.
Lithium Extraction: Key to the Smackover’s Future
CVX and XOM have assembled large lease positions and are openly targeting DLE, signaling confidence that Smackover brines can support scaled, long life lithium production.
2026 is a derisking year for the basin.
Pilot plants, offtake deals and joint ventures are moving the Smackover from an emerging idea to a competitive U.S. lithium basin with clearer paths to commercialization.
About Enverus Intelligence® | Research, Inc. (EIR)
Enverus Intelligence® | Research, Inc. (EIR) is a subsidiary of Enverus that publishes energy-sector research focused on the oil, natural gas, power and renewable industries. EIR publishes reports including asset and company valuations, resource assessments, technical evaluations, and macroeconomic forecasts and helps make intelligent connections for energy industry participants, service companies, and capital providers worldwide. See additional disclosures here.
