A massive lithium mine is under construction near Winnemucca, Nevada, and it could have a huge impact on the world supply of this critical mineral – as well as the production of lithium-based products.
According to some experts, the Thacker Pass Mine is the largest-known deposit of lithium in the world.
But not all the locals are happy about the roughly 2,000 jobs the mine will create and the impact on the environment and on the town of 8,600 in Northern Nevada. More on that in a bit.
The mine, 50 miles northwest of Winnemucca, is making significant progress:
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- Construction status: Major construction will accelerate in 2025, after the closing of a $2.26 billion loan from the US Department of Energy
- Workforce: The project will house nearly 2,000 workers during the peak construction phase. A temporary workforce hub is being constructed in East Winnemucca to house these workers. According to some reports, many locals are shocked by the number of temporary housing units being put in place.
- Production goals: According to Lithium Americas, once fully operational, the mine is expected to produce 40,000 tons per year of battery-grade lithium carbonate, supporting the production of batteries for up to 800,000 electric vehicles annually.
- Environmental and community Impact: The project has faced some opposition due to concerns about environmental impact and cultural significance. However, proponents argue that it will help reduce carbon emissions and provide economic opportunities in the region.
Lithium: The Fuel for the Future
Lithium, a lightweight, silvery-white alkali metal, has become a critical component in modern technology. Its unique properties make it an essential ingredient in a wide range of applications, particularly in the rapidly growing fields of electronics and renewable energy.
While lithium-ion batteries are the most well-known application of lithium, the element’s versatility extends far beyond energy storage. Lithium compounds are also used to produce specialty glasses and ceramics, such as those found in smartphones and fiber optic cables.
The development of the lithium mine could significantly impact the global supply of lithium. Increased domestic production in the US can reduce reliance on foreign sources, stabilize prices, and potentially accelerate the transition to a low-carbon economy.
Furthermore, the mine could alter the global balance in terms of high-tech manufacturing. One of the reasons China has been the center of tech manufacturing is its access to rare earth metals. As part of investments made to shore up the supply chain security of strategic resources, the US has invested in rare earth metal mines and semiconductors as part of the CHIPS and Science Act. This investment is not only a political strategy, but an economic one as well. When you move the components of major technology products closer to the US, it changes the equation when determining where to manufacture batteries, phones, laptops, and other components. Shorter, cheaper, and less complicated supply chains might mean production of more lithium-based products in the US, Canada, and Mexico, accelerating ongoing Chinese divestment.
Global Lithium Production and Challenges
Currently, Australia, Chile, and China are the world’s leading lithium producers. However, as demand for lithium-ion batteries continues to soar, driven by the electric vehicle revolution and the proliferation of mobile devices, there is a growing need to diversify the supply chain and secure new sources of lithium.
Nevertheless, the mining and processing of lithium can have significant environmental and social consequences, including water usage, air pollution, and habitat destruction. Additionally, the extraction process can be energy-intensive and costly.
The Reno Gazette Journal interviewed Winnemucca Mayor Rich Stone about the mine’s impact. “My concern is, how is it impacting our city?” Stone told the newspaper. “What we are preparing for is 2,000 construction jobs to build the facility in the next two years. That’s about 25 percent of the city’s (current) population — not all at one time, but it is impacting (the) city.”
Stone is worried about the behavior of the construction workers when they blow off steam in Winnemucca’s bars and casinos.
“I think Lithium (Americas) is doing a good job to build a camp and house them and provide services for them,” Stone told the Gazette-Journal. “But they will still be in our city. They still will be coming to our businesses and restaurants and that will have a positive impact. But when we have that many construction workers that aren’t living with their families, and Nevada, being a 24/7 state, it presents some challenges, law-enforcement wise.”
There are also environmental and social concerns.
The Gazette-Journal also interviewed Humboldt County Commissioner Ron Cerri. “Sometimes I have conflicting views on the project,” Cerri told the paper. “As a county commissioner, I look at it as this is going to be a big economic boost. I think we all appreciate that this is going to give us additional diversification in this county. (However), agriculture has always been a mainstay in Humboldt County and so from a ranching and farming perspective, we’re concerned about the impact that this project can have on our water.”
When it comes to local Native American tribes and how they might be affected, the Gazette-Journal reported the following:
As part of a “good neighbor policy,” Lithium Americas was signing a contract with the nearby Fort McDermitt Paiute and Shoshone Tribe to hire and train tribal members to work at the mining site. Lithium Americas also agreed to build a community center and daycare center to allow tribal members to balance work and family.
Beyond lithium, several other critical minerals are essential for the tech industry:
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- Rare earth elements: Used in electronics, magnets, and renewable energy technologies.
- Cobalt: A key component in lithium-ion batteries.
- Nickel: Used in batteries and stainless-steel production.
- Copper: Essential for electronics, wiring, and renewable energy infrastructure.
Opportunities and Challenges
The Thacker Pass lithium mine presents a complex mix of opportunities and challenges for Winnemucca and the broader world. The project is poised to significantly boost the global supply of lithium, a crucial element in renewable energy and technology. This expansion has the potential to reduce dependency on foreign lithium sources, stabilize market prices, and support the transition to a low-carbon economy. It could lead to more lithium-based products being products in the US, Canada, and Mexico.
However, these benefits come with notable concerns. The influx of approximately 2,000 workers during construction will impact the small town, bringing both economic opportunities and social challenges. Environmental and cultural impacts are also significant issues, with local residents expressing mixed feelings about the project’s effects on their community.
As we advance into an era where sustainable energy solutions become increasingly critical, projects like Thacker Pass will play a pivotal role. Balancing the economic gains with responsible environmental stewardship will be key to ensuring that this endeavor contributes positively to both local and global landscapes
By Tom Dunlap, Research Director, Avasant