CRITICAL MINERALSA New Generation of Industries Emerges in Texas as Feds Push to Mine More Rare Minerals
The U.S. doesn’t produce the minerals and metals needed for renewable energy, microchips or military technology. Major oil companies are drilling in East Texas again, but not for oil. This time, they’re after lithium for batteries and other rare elements.
Major oil companies are drilling in East Texas again, but not for oil. This time, they’re after lithium for batteries and other rare elements.
Chevron and Halliburton announced East Texas projects this summer. Exxon has acreage across the border in Arkansas. Smackover Lithium, a joint venture of a Norwegian oil giant and a Canadian miner, announced in late September the discovery of the most lithium-rich fluids ever reported in North America, measured deep beneath its Texas claims in a massive brine deposit called the Smackover Formation.
“It’s ripe for development,” said Jamie Liang, a former Wall Street banker and founder of Houston-based lithium startup TerraVolta, which is developing a lithium refinery on the Smackover with federal support. “There’s tremendous growth potential.”
Lithium mining is one of several mineral industries emerging in Texas as part of broad federal efforts to urgently establish American production of the materials required for advanced manufacturing, from batteries and solar cells to wind turbines, microchips and cruise missiles.
Competition with China looms over this effort. For much of this year, the world’s two largest economies have been locked in trade tensions— and much of the ire is linked to minerals used in technology. This month, China announced new export controls on critical mineral products, including lithium battery components. President Trump, in social media posts, described China as “very hostile” and threatened to impose export controls on critical software and add 100% tariffs to Chinese imports.
Near Texarkana, the chase for lithium is backed with robust federal support. Liang’s TerraVolta received $225 million from the U.S. Department of Energy in 2024 for its lithium refinery complex. This year the project was selected for fast-tracked permit review.
It will pump up the naturally metallic super-salty fluids from the Smackover, extract lithium and other minerals and then inject the leftover liquids back underground. At least two other lithium refineries are planned in the area and companies have leased tens of thousands of acres for drilling. More will likely follow as long as lithium prices stay strong.
“There’s going to be a very large-scale infrastructure buildout,” Liang said. “You’re going to be drilling wells. You’re going to need those service companies. You’ll need pipelines.”
