The largest lithium deposit in North America is inside the caldera of an extinct volcano in Nevada close to the heavily politically contested Thacker Pass, and has sent shockwaves through the scientific and industrial communities alike.
The find was originally reported by researchers, Lithium Americas (TSX: LAC) geologist Thomas Benson, Matthew Coble and John Dilles in a paper published on August 30, 2023, in the journal Science Advances.
According to Chemistry World, the trio estimates that a volcanic crater formed around 16 million years ago contains 20 to 40 million tons of lithium metal. This discovery surpasses the previously considered largest lithium deposits beneath a Bolivian salt flat. An analysis has revealed that the volcanic crater contains an unusual claystone, composed of the mineral illite, which holds 1.3 per cent to 2.4 per cent of lithium.
Australia and Chile were the leaders in terms of lithium production in 2022, contributing to nearly 77 per cent of the world’s lithium production. Meanwhile, The ‘Lithium Triangle,’ comprising Chile, Argentina and Bolivia, collectively holds over 75 percent of the world’s lithium supply beneath their salt flats.
This may change all that.
“If you believe their back-of-the-envelope estimation, this is a very, very significant deposit of lithium,” said Anouk Borst, a geologist at Belgium’s KU Leuven University.
“It could change the dynamics of lithium globally, in terms of price, security of supply and geopolitics.”
With increasing concerns about energy security, the U.S. has implemented policies aimed at promoting and subsidizing specific industries, including critical mineral mining. Nevada is emerging as a comprehensive lithium hub.
Companies such as Vancouver-based, Lithium Americas and American Lithium Corp. (TSXV: LI) have leapt on the opportunity.
Benson states that his company, Lithium Americas, anticipates commencing mining operations in 2026. Their process involves the removal of clay with water, followed by the separation of small lithium-bearing grains from larger minerals using a centrifuge. Afterwards, the clay will undergo leaching in vats containing sulfuric acid to extract the lithium.
“If they can extract the lithium in a very low energy intensive way or in a process that does not consume much acid, then this can be economically very significant,” says Borst.
“The US would have its own supply of lithium and industries would be less scared about supply shortages.”
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Thacker Pass mine receives legal and environmental opposition
The proposed lithium discovery is not without its detractors, however.
The project has faced legal challenges and direct action from various opponents. The Fort McDermitt Paiute and Shoshone groups oppose the project. They assert that Thacker Pass holds sacred and historical significance, including being a massacre site, and claim that they were not properly consulted by the Bureau of Land Management.
Opponents of the mine have expressed concerns about an expedited environmental review, potential harm to critical wildlife habitat, disruption of cultural sites and connections between resource extraction and cases of missing and murdered indigenous women.
In May, the Biden administration completed a court-ordered review that ensures construction will continue at a Nevada lithium mine, despite legal challenges from conservationists and tribal leaders.
Simultaneously, the Interior Department announced steps to clarify mineral rights under the 1872 law in response to recent U.S. court rulings that more strictly interpret it. The 9th U.S. Circuit Court of Appeals also blocked a proposed copper mine in Arizona last year.
The Appeals Court is presently considering an appeal filed by environmentalists and Native American groups challenging the construction of the massive Thacker Pass lithium mine in Nevada near the Oregon line.
The 9th Circuit’s ‘Rosemont decision’ changed the government’s longstanding position. It no longer considers the 1872 Mining Law to automatically grant the rights to dispose of tailings and waste on adjacent land through a valid mining claim. Instead, the company now needs to prove, and the government must confirm, the presence of valuable minerals under such lands for a claim to be valid.
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Securing a domestic lithium supply has become top priority
The discovery within the McDermitt Caldera not only illuminates a potentially game-changing source of lithium but also underscores the United States’ growing urgency to address its ongoing lithium shortage.
Securing a domestic and sustainable lithium supply has become a top priority as the demand for lithium-ion batteries escalates.
The lithium-rich deposits found in the caldera near Thacker Pass offer a glimpse of the country’s untapped lithium potential and emphasize the significance of further exploration and development of domestic lithium sources to alleviate the nation’s dependence on imported lithium and ensure its position in the global transition to clean energy.
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