Four IOCs Engage in Lithium Extraction Projects in Smackover Formation

Recent price recovery in lithium carbonate has prompted international oil companies (IOCs) to resume investment in lithium extraction from the Smackover Formation in the Southeastern US. This shift follows a significant price drop that previously stalled such initiatives.

Published Apr 1, 2026

After a 90% decline in lithium carbonate prices from 2022 to late 2025, investment in lithium extraction from US brine deposits faced significant challenges. However, a recent price rebound has enabled projects in the Smackover Formation to secure offtake agreements, with Equinor leading the way.

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Other major players, including Exxon Mobil, Occidental Petroleum, and Chevron, are also entering the lithium sector, leveraging their expertise in upstream operations. The renewed interest from these IOCs may catalyze growth in the lithium industry, but risks associated with market volatility could impact long-term project sustainability.