Just in case you didn't think Elon Musk was already rich enough, the world's richest man could be about to strike it lucky once again thanks to a $1.5 trillion discovery inside a supervolcano.
There's been a massive increase in the discovery of rare Earth minerals and precious metals, and as the manufacturing industry continues to evolve, lithium could become one of the most sought-after metals on our little planet. This means the discovery of a $1.5 trillion lithium deposit means big business.
Dubbed the world's biggest lithium reservoir, the McDermitt Caldera measures a massive 45 by 35 kilometers and was formed 16.4 million years ago in the aftermath of a catastrophic volcanic eruption.
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As a lake pooled inside the caldera, layers of volcanic ash and mineral-packed sediments evolved into lithium-bearing clay minerals.
Scientists have taken drill samples, discovering that the McDermitt Caldera contains 2.4 weight percent, which far exceeds the global average of 0.4 weight percent.
Importantly, it's thought that the McDermitt Caldera could surpass Bolivia’s Salar de Uyuni as the previous site of the world’s largest lithium source.
Why is lithium so important?
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As the world tries to make a push toward electric vehicles, lithium is becoming increasingly important.
It's thought that the McDermitt Caldera could have enough lithium to create up to 600 million electric vehicles, which is a big deal for American EV manufacturers, especially considering President Trump's trade war and soaring import tariffs. Lithium is a central ingredient in the lithium-ion batteries that power everything from smartphones to laptops these days.
The big one is electric vehicles, which, it just so happens, Tesla is known for churning out.
How will Tesla and Elon Musk benefit from the $1.5 trillion lithium deposit?
The reason Musk could see his already impressive bank balance boom is thanks to the use of lithium batteries in the production of Tesla cars.
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While Musk's position as company CEO has caused a fair bit of controversy, and he recently had to report a massive 70% drop in profits, the lithium deposit might've arrived at just the right time.
Researchers suggest that 20 million metric tons of lithium could be lurking beneath, and if fully developed, it could massively reduce the USA's reliance on lithium imports. Although Tesla has been given a way around the tariffs, Musk previously warned about how the company could be seriously impacted.
Tesla currently relies on a multi-faceted lithium supply chain, although it boasts its own in-house lithium refinery based in Texas and hopes to produce 50 GWh of battery-grade lithium per year.
Will anyone else benefit?
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In general, the electric car industry could reap the benefits of the discovery, especially for those manufacturing in America. While China's BYD rules the roost as the biggest EV manufacturer globally, Tesla might not be alone in its windfall. Just like Musk and Jeff Bezos have jostled for control of the cosmos with SpaceX and Blue Origin, the Amazon boss has thrown his own substantial wealth behind an EV startup called Slate Auto.
Musk's ties to President Trump would surely see Tesla gleefully rubbing its hands over $1.5 trillion of lithium, but across the board, any American-based manufacturer that's been hobbled by lithium imports is likely smiling right now.
Elsewhere, the fact that Australia also has its own lithium motherlode means the global lithium market could soon be turned on its head.
Of course, the McDermitt Caldera site remains a point of contention as indigenous groups like the People of Red Mountain have called the potential extraction 'green colonialism' as various parties are destined to descend on the lithium deposit.