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.