Chevron’s 2025 Energy Storage Pivot: From Lithium and Hydrogen to Grid Dominance

Industry Adoption: Chevron’s Shift from Oil Major to Energy Storage Powerhouse

Between 2021 and 2024, Chevron’s approach to energy storage was characterized by strategic exploration and foundational investments. The company used its venture capital arm, Chevron Technology Ventures (CTV), and its New Energies division to build a diversified portfolio. This period saw key moves like acquiring a majority stake in the world’s largest planned green hydrogen storage project, ACES Delta, and backing emerging battery chemistries through investments in Natron Energy (sodium-ion) and Malta Inc. (thermal storage). The strategy was one of placing calculated bets across the storage landscape, from long-duration hydrogen to next-generation EV charging with Electric Era. The focus was on gaining exposure and understanding technological pathways without committing to a single vertically integrated strategy.

The landscape shifted dramatically in 2025, marking an inflection point from exploration to execution. The cornerstone of this change was the June 2025 acquisition of 125,000 net acres in the Smackover Formation, a decisive pivot to become an upstream supplier of lithium. This move leverages Chevron’s core competencies in subsurface extraction to control a critical part of the battery supply chain, moving beyond passive investment to active participation. This strategic clarity was further validated by tangible project milestones. The ACES Delta hub produced and stored its first hydrogen in late 2025, transitioning from a development project to an operational asset. Simultaneously, a thermal battery from CTV-backed Rondo Energy was activated at a Chevron facility. This shift from funding startups to deploying technology and acquiring resource assets signals a mature, integrated strategy aimed at securing a dominant position in both the materials and infrastructure layers of the energy storage market.

Table: Chevron’s Strategic Investments in Energy Storage and Batteries

Table: Chevron’s Strategic Partnerships in Energy Storage and Batteries

Geography: Chevron’s Domestic Anchors and Global Expansion

Between 2021 and 2024, Chevron’s energy storage activities were heavily anchored in the United States, reflecting a strategy to leverage domestic assets and policy support. The marquee projects were geographically concentrated: the ACES Delta hydrogen storage hub in Delta, Utah; the Bayou Bend CCS project (a precursor to blue hydrogen storage) in Jefferson County, Texas; and venture investments in California-based startups like Malta Inc. and Electric Era. This U.S.-centric approach focused on building large-scale domestic infrastructure and fostering innovation within a familiar regulatory environment. International activity was limited to partnerships like the MOU with Japan’s JX Nippon to explore a CCS value chain in the Asia-Pacific, indicating early-stage global exploration.

From 2025 onwards, the geographic focus has both intensified domestically and expanded internationally. The acquisition of 125,000 acres in the Smackover Formation across Texas and Arkansas establishes a new, formidable operational hub in the U.S. Gulf Coast focused on lithium production. The partnership with Engine No. 1 to power U.S. data centers further solidifies this domestic concentration. However, a clear global expansion is now underway. The October 2025 investment in South Africa’s maxwell+spark to electrify industrial applications and the November 2025 partnership with PetroVietnam to develop energy storage infrastructure signal a new phase. Chevron is now actively deploying capital and forming operational partnerships in key international growth markets, moving beyond exploration to establish a tangible global footprint in the energy storage sector.

Technology Maturity: Chevron’s Journey from Venture Bets to Commercial Deployment

In the 2021-2024 period, Chevron’s strategy was defined by building a diversified portfolio across the technology readiness spectrum. The company placed significant bets on technologies nearing commercial scale, most notably with the acquisition of the ACES Delta green hydrogen project. Concurrently, it made venture-stage investments in companies moving from pilot to early commercialization, such as Natron Energy’s sodium-ion batteries and Electric Era’s integrated EV chargers. A third tier of investment targeted earlier-stage, potentially disruptive technologies like Malta’s thermal storage and LiNova’s polymer cathode batteries. This approach was characteristic of a technology scouting phase, aimed at identifying winners across multiple storage pathways while mitigating risk by not over-committing to any single unproven technology.

The period from 2025 to today marks a decisive shift from scouting to large-scale deployment and strategic vertical integration. The most significant validation point is the ACES Delta project achieving its first hydrogen production and storage, moving a massive asset from the development pipeline to an operational reality. Similarly, the activation of CTV-backed Rondo Energy’s heat battery at a Chevron facility shows a successful transition from venture investment to commercial application. The most profound strategic move is the commitment to deploy Direct Lithium Extraction (DLE) at commercial scale in the Smackover Formation. While DLE is still an emerging technology, Chevron’s decision to anchor a core business pillar on it elevates it from a venture-level experiment to a strategic imperative. The failure of Natron Energy in late 2025 serves as a critical data point, validating the inherent risks of venture bets and likely reinforcing Chevron’s current focus on technologies it can control and scale directly.

Table: SWOT Analysis of Chevron’s Energy Storage Strategy

Forward-Looking Insights and Summary

The most recent data from 2025 signals that Chevron has fully committed to a dual-pronged energy storage strategy, and the year ahead will be about execution and validation. The primary signal to watch is the progress of its Smackover Formation lithium project. Any announcements regarding pilot plant results, DLE processing efficiency, or initial offtake agreements will be critical indicators of whether this multi-billion-dollar bet on upstream integration can become a profitable business line. Success here would position Chevron as a key supplier to the entire U.S. battery and EV manufacturing ecosystem.

Second, with the ACES Delta project now operational, expect announcements regarding a potential second phase (ACES II) or similar green hydrogen storage hubs in other regions with favorable salt cavern geology. This would solidify Chevron’s early leadership in long-duration energy storage. Finally, pay close attention to the intersection of its new ventures. The joint venture to power AI data centers creates a perfect captive market for its own energy solutions. The key question is whether Chevron will announce plans to integrate its own lithium-based battery storage systems or hydrogen-powered generation into these data center projects, creating a powerful, self-reinforcing business loop. The investments from its $500 million Future Energy Fund III will provide the earliest clues to its next technological frontiers, likely targeting battery recycling and energy management software to complete its end-to-end storage strategy.

Frequently Asked Questions

What was the most significant change in Chevron’s energy storage strategy in 2025?
The most significant change in 2025 was Chevron’s pivot from making exploratory venture capital investments to direct execution and vertical integration. The cornerstone of this shift was the acquisition of 125,000 acres in the Smackover Formation to establish a commercial-scale lithium extraction business, moving from a passive investor to an active upstream supplier in the battery supply chain.

What are the main types of energy storage technologies Chevron is pursuing?
Chevron is pursuing a diversified technology strategy. This includes becoming a major supplier of battery materials (lithium from the Smackover Formation), investing in next-generation battery chemistries (LiNova’s polymer cathode, Natron’s sodium-ion), developing large-scale hydrogen storage (ACES Delta project), and exploring thermal energy storage (Malta Inc., MGA Thermal) for grid and industrial use.

Have all of Chevron’s energy storage investments been successful?
No. The article highlights the inherent risks of venture investments by noting that Natron Energy, a sodium-ion battery company backed by Chevron, reportedly ceased operations in late 2025. This failure is presented as a validation of venture risk and a potential reason for Chevron’s shift toward a more integrated strategy it can control directly.

Is Chevron’s strategy focused only on the United States?
While initially anchored in the U.S. with projects like the ACES Delta hub in Utah and the Smackover lithium project in Texas/Arkansas, Chevron’s strategy expanded internationally in 2025. The article cites an investment in South Africa’s maxwell+spark and a partnership with PetroVietnam in Southeast Asia as evidence of a new phase of global expansion to establish a tangible footprint in key growth markets.

What is the biggest risk to Chevron’s lithium production plan?
According to the SWOT analysis, the biggest risk or threat to Chevron’s strategy is its heavy reliance on the successful commercialization of Direct Lithium Extraction (DLE) technology at scale. The entire Smackover Formation lithium project is dependent on this emerging technology, and any failure to scale it effectively could jeopardize this core pillar of their energy storage ambitions.