Shares of Chevron Corporation (NYSE:CVX) climbed 2% after the energy major revealed its initial foray into the lithium sector with the purchase of roughly 125,000 net acres of mineral-rich land. This marks a significant step in Chevron’s efforts to diversify its energy portfolio amid growing demand for battery materials.

The oil giant’s U.S. subsidiary acquired acreage from TerraVolta Resources, backed by The Energy & Minerals Group, and East Texas Natural Resources LLC. The properties, located across Northeast Texas and Southwest Arkansas, contain the Smackover Formation, which is known for its high lithium content.

Chevron has announced its entry into the U.S. lithium industry through a major land deal with energy startup TerraVolta and East Texas Natural Resources.