August M
Global demand for lithium is rising sharply as electric vehicles and battery storage become central to energy transition plans. Industry researchers warn supply will need to expand dramatically in the coming decades to keep pace.
Some projections suggest that by 2040, demand for lithium could be eight times higher than it was in 2022, potentially requiring around one million tons annually.
Against that backdrop, a newly highlighted deposit in the western United States is drawing attention.
Buried beneath lava
According to reporting by LADBIBLE, citing Earth magazine, geologists believe the McDermitt Caldera on the Oregon-Nevada border could contain between 20 and 40 million tons of lithium. The site marks the remains of an ancient supervolcano and has previously been mined for mercury and uranium.
If confirmed at scale, it may rank among the largest known lithium deposits globally.
Lithium is a core component in rechargeable batteries used in smartphones, laptops and electric vehicles, making it a strategic resource for manufacturers and governments alike.
Trillion dollar question
At current market prices of about $37,000 per ton, the estimated reserves could carry a theoretical value of roughly $1.5 trillion, or £1.1 trillion.
However, such headline figures assume today’s pricing holds. Analysts note that a substantial increase in supply would likely push prices down, meaning the real-world value of extracted lithium could be significantly lower.
Large mineral discoveries often generate eye-catching valuations in early estimates, but the economics can shift quickly once production begins and markets adjust.
Complex trade-offs
Before any extraction could take place, companies and regulators would need to address environmental assessments, permitting processes and community concerns.
Mining projects of this scale typically raise questions about land use, water consumption and long-term ecological impact.
Whether the McDermitt Caldera ultimately becomes a cornerstone of future lithium supply will depend not only on geological potential, but also on economic viability, environmental safeguards and political decisions in the years ahead.
Sources: LADBIBLE, Earth magazine
