The Smackover Formation, which arcs from East Texas to the Florida panhandle, has become the country's most closely watched proving ground for "direct lithium extraction" (DLE). The Dallas Fed flagged this region as "ground zero" for brine-sourced lithium, and recent events have only reinforced that view. In this update, I will point out a few of those developments and discuss their significance for our region.
New Capital Investments
Earlier this summer (2025), Chevron acquired leaseholds covering roughly 125,000 acres across Northeast Texas and Southwest Arkansas, representing one of the first serious moves the company has made into domestic lithium production in the Smackover. The addition of another supermajor alongside ExxonMobil will undoubtedly spark economic growth for the area.
Additionally, Standard Lithium and Equinor are not sitting on the sidelines. Through their 2024 joint venture "Smackover Lithium," both companies are advancing parallel projects to exploit the potential lithium boom by developing more infrastructure within both Arkansas and Texas.
But wait, there's more! TETRA Technologies, long active in the Smackover fluids value chain (bromine and related), has spent the better part of this year expanding its Evergreen Unit and reporting stronger financial guidance, positioning itself as a strategic brine partner as lithium projects commercialize.
These investments are not immaterial and signal increased activity for the Smackover.
Arkansas and Texas Team up
While ExxonMobil's first DLE complex is located across the border in Arkansas, Exxon is developing supply agreements and onsite conversion strategies that are relevant to the entire Smackover play, including East Texas. Expect those commercial frameworks to influence neighbors and midstream partners in our area soon.
In a related move, GeoFrame Energy and Halliburton have joined forces to pursue lithium opportunities across about 8,000 acres in northeast Texas. The partnership is promoting a complete, Texas-based supply chain—from extraction to refining—illustrating how oilfield service expertise is adapting to support direct lithium extraction (DLE) in the region.
New Texas Lithium Plant Incoming
Mount Vernon, Texas, is preparing for the arrival of a lithium production plant that will bring new jobs to the community. Operations are to begin as early as 2026, spurring investments in utility upgrades and broader economic planning.
Legal Landscape Update
In Texas, the ownership of lithium found in brine wastewater has been "murky." For reasons beyond the scope of this update, the mineral owner and surface owner both had colorable claims to ownership. However, on June 27, 2025, the Texas Supreme Court decided Cactus Water Services, LLC v. COG Operating, LLC. Bottom line: unless a deed or lease expressly says otherwise, the rights conveyed with the mineral estate include the produced water that flows from oil and gas operations. Meaning it's the mineral lessee's property, not the surface owner's.
Why does Cactus Water v. COG matter?
Brine/Lithium ownership clarity reduces deal friction. DLE projects depend on stable access to subsurface brines, and the ability to handle, process, and market the resource is vital for the industry to succeed. The Cactus ruling reduces ownership ambiguity, paving the way for the industry to invest fully.
My Takeaways
The East Texas lithium boom is no longer just hype: supermajors are leasing acreage, joint ventures are lining up resources, local governments are prepping for plants and jobs, and the Texas Supreme Court has removed a key ownership question around brine-based lithium. So, the stage is set for an East Texas Lithium Boom.
If you are an unleased Texas mineral owner in the Smackover play who has been offered a brine lease, allow Texas Lithium Lawyer to help you navigate this new frontier.