Featured Image Credit: Bloomberg Creative / Getty
In case you missed it, geologists recently discovered the world’s largest known lithium deposit, estimated to be worth around $1.5 trillion.
The deposit was hiding in a long-dormant supervolcano in the McDermitt Caldera (on the border of Nevada and Oregon), where clay containing millions of tons of the precious metal was uncovered.
Now, experts believe this newly unearthed treasure trove could be a game-changer for the US and the future of electric vehicles.
How so?
Advert
Well, lithium is a key part of batteries, thanks to its light weight and excellent electrochemical properties. Today, lithium is widely used in electric vehicles, smartphones, laptops, and other gadgets, which makes it one of the most sought-after materials in the world.
If extraction methods prove efficient, this find could position the US as a leading global supplier of lithium and a strong competitor in the global clean energy economy.
Lithium demand has been booming as countries worldwide ramp up efforts to cut carbon emissions. Yet, while the future of EV policies in the US remains shaky, to say the least, other parts of the world are pushing full speed ahead. So, this discovery couldn’t have come at a better time.
However, such a big opportunity doesn't come without its challenges. The proposed extraction process involves building roads and drilling wells to assess the deposit. Environmental groups, like the Sierra Club, warn that this could seriously harm local wildlife and ecosystems.
Meanwhile, the surrounding area of the McDermitt Caldera is a rich cultural heritage area for several Indigenous tribes.
“We need to do this the Oregon way – with full accountability and shared benefits,” said Greg Smith, director of economic development in Malheur County.
To complicate things further, the lithium in this case is embedded in claystone rather than the usual salt brine deposits typically found in South America. Extracting it will require more complex methods like acid leaching, which brings its own risks.
“This feature is 16 million years old, and we're making decisions in a matter of years,” said Sammy Castonguay, a geologist at Treasure Valley Community College, highlighting the need for thoughtful planning.
Still, the mining proposals in Oregon are moving forward, and investors remain hopeful that the global demand for lithium will keep climbing.
Prior to this discovery, the United States Geological Survey announced in October 2024 that southwestern Arkansas might be sitting on five to 19 million tonnes of lithium resources, as per Forbes. It claimed: “If commercially recoverable, the amount of lithium present would meet projected 2030 world demand for lithium in car batteries nine times over.”
