A recent geological reassessment of the McDermitt Caldera, located on the Oregon-Nevada border, has confirmed it may hold the most extensive lithium deposit ever discovered in the United States. Experts estimate the site’s lithium reserves could be worth up to $1.5 trillion, positioning the U.S. as a major contender in the global battery supply chain.
Unveiling a Game-Changing Lithium Reserve
While the presence of lithium in the caldera has been known for years, recent analyses suggest the scale of the deposit is significantly greater than previously assumed. This discovery has the potential to revolutionize U.S. efforts to secure a domestic lithium supply, essential for electric vehicle (EV) batteries and renewable energy storage.
The McDermitt Caldera was formed by a massive volcanic eruption around 16.4 million years ago. The volcanic activity led to the concentration of lithium-rich claystone, particularly in lakebed sediments. These unique geological conditions created one of the world’s most promising lithium sources.
Lithium Extraction Projects in Motion
In Nevada’s southern section of the caldera, Lithium Americas is spearheading the Thacker Pass project, expected to commence lithium extraction by 2026. The project has received over $2 billion in federal loans and investments from major corporations such as General Motors.
On the Oregon side, Australian company Jindalee Resources is exploring an equally vast lithium deposit. While no formal mining plans have been announced, geologists speculate the Oregon reserve could outsize other known lithium sources in the U.S.
“This formation has been around for 16 million years, yet we are making crucial decisions within just a few years,” noted geologist Sammy Castonguay of Treasure Valley Community College. “We need to understand the long-term implications.”
Record-Breaking Lithium Estimates
According to a Business Insider report, McDermitt Caldera could hold between 20 to 40 million metric tonnes of lithium in its mineral-rich clay deposits. If confirmed, this would make it the largest lithium reserve globally, surpassing even Bolivia’s famed Salar de Uyuni, which holds approximately 21–23 million tonnes of lithium. Argentina’s vast lithium reserves, estimated at around 20 million tonnes, also pale in comparison to McDermitt’s upper estimates.
The new findings vastly exceed prior estimates, which projected total U.S. lithium resources at roughly 18 million tonnes. This massive upward revision highlights the McDermitt Caldera as a potential game-changer for the U.S. lithium industry.
Economic Impact and Market Value
With lithium carbonate prices averaging around $37,000 per metric tonne, the McDermitt deposit’s value could reach an astonishing $1.5 trillion. As global lithium demand is projected to surge 40-fold by 2040, per the International Energy Agency, the U.S. is strategically positioned to capitalize on this market shift.
Challenges and Environmental Concerns
Extracting lithium from claystone presents unique technical and environmental hurdles. Unlike lithium brine operations, where lithium is extracted from salt flats, the McDermitt deposit consists of illite—a type of clay that requires advanced chemical leaching methods. Researchers are developing closed-loop processing techniques to reduce water consumption and mitigate environmental damage.
Local communities have mixed reactions to the prospect of large-scale mining. In Malheur County, one of Oregon’s most economically challenged regions, a lithium operation could generate employment and infrastructure improvements. However, previous mining projects in the area have left toxic legacies, with abandoned mercury waste still visible today.
Indigenous groups and environmental activists have also voiced concerns, particularly regarding the impact of the Thacker Pass project on sacred lands, water sources, and local wildlife.
“The U.S. cannot afford to repeat the mistakes of the past,” stated Greg Smith, Malheur County’s economic development director. “We must prioritize responsible mining practices that ensure transparency and shared benefits for all stakeholders.”
The Future of U.S. Lithium Supply
As the U.S. works to reduce its reliance on foreign lithium sources under the Inflation Reduction Act, McDermitt Caldera has drawn national and international attention. The central question now is whether this immense lithium reserve can be developed in a way that balances economic growth with environmental and social responsibility.
FAQs
1. What makes the McDermitt Caldera’s lithium deposit so significant?
The McDermitt Caldera may hold between 20 and 40 million metric tonnes of lithium, making it one of the largest, if not the largest, lithium deposits in the world. This find could significantly boost U.S. lithium production for battery and energy storage needs.
2. When will lithium extraction begin at McDermitt Caldera?
The Thacker Pass project in Nevada is scheduled to begin extraction in 2026. The Oregon side of the caldera is still in the exploration phase, with no official mining plans announced yet.
3. How does this lithium discovery compare to global reserves?
McDermitt’s lithium reserve estimate surpasses Bolivia’s Salar de Uyuni and Argentina’s reserves, making it a potential record-breaking discovery.
4. What are the environmental concerns related to lithium mining at McDermitt Caldera?
Lithium extraction from claystone requires advanced chemical leaching, which raises concerns about water usage, land degradation, and pollution. Indigenous groups also worry about the impact on sacred sites and local ecosystems.
5. How could this discovery impact the U.S. economy?
With lithium prices averaging $37,000 per metric tonne, the estimated $1.5 trillion value of McDermitt’s lithium reserves could strengthen the U.S. position in the battery market, reduce dependence on foreign sources, and create thousands of jobs.
