Groundbreaking discovery of 19,000,000 tons of ‘new oil’ could power the entire world’s electric vehicles for decades
The US has been on a winning streak lately in the race for clean energy.
After finding a massive $1.5 trillion deposit of lithium inside a supervolcano on the Nevada-Oregon border, researchers have also uncovered another game-changing lithium find.
Now, according to a US Geological Survey (USGS)-led study, scientists have stumbled across five and 19 million tons of lithium reserves beneath southwestern Arkansas. Using advanced water testing and machine learning, the team was able to estimate how much lithium lies in an underground saltwater formation called the Smackover. If successfully extracted, the amount of lithium could meet the world's demand for electric car batteries in 2030 nine times over.
How will the lithium be extracted?
One of America’s biggest oil companies ExxonMobil has already signed a deal with global battery company SK On on 'supplying lithium for about 1 million EV batteries annually by 2030 and support the build out of a U.S. EV supply chain,' as per the company's release.
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The process will involve drilling a series of wells about 10,000 feet underground using rigs similar to those used in oil rigs into the formation.
The lithium in the Smackover is contained in saltwater, which will flow up the wells to the surface before a method called direct lithium extraction (DLE) technology will separate the lithium from the brine.
Why are lithium deposits so valuable?
Lithium is an essential component in electric vehicle (EV) batteries, making it one of the most sought-after minerals globally.
With EV production and a drive for clean energy on the rise, the US is eager to reduce its reliance on foreign lithium especially as global conflict threatens key resource supply lines.
“Lithium is a critical mineral for the energy transition, and the potential for increased U.S. production to replace imports has implications for employment, manufacturing and supply-chain resilience," said David Applegate, USGS Director.
Katherine Knierim, a hydrologist and the study’s principal researcher, added: “Our research was able to estimate total lithium present in the southwestern portion of the Smackover in Arkansas for the first time.
"We estimate there is enough dissolved lithium present in that region to replace US imports of lithium and more.”
Why Elon Musk calls lithium the 'new oil'
Tesla and SpaceX CEO Elon Musk began construction on its own lithium refinery in Texas, investing a whopping $365 million into the facility.
The tech mogul called the refinery a 'money-printing machine' and said it could produce enough lithium to support battery production for one million electric vehicles per year. This would make Tesla one of the largest lithium processors in North America, becoming a major player in reshaping the world's EV industry.
It’s a fitting move, considering the world's richest man once called lithium batteries 'the new oil' as Tesla expands into a region long known for its oil riches.
"Lithium refining is in high demand," investment website The Motley Fool noted. "Tesla has been working hard to get its lithium refinery up and running, and the lithium hydroxide it will produce will be used as a component in the battery cells manufactured at Tesla's Gigafactory."
"Earlier this year, the company revealed that it was expanding its facility in Nevada to include a 100-GWh 4680 cell factory, which will be capable of producing enough batteries to equip roughly 1.5 million light-duty EVs each year."