When it comes to rare earth elements (REEs), lithium stands out for its usefulness and potential value. That’s why the Department of Energy (DOE) jumped for joy when it discovered what is believed to be the world’s largest lithium reserve beneath California’s Salton Sea. The mother lode, estimated at 18 million tonnes, could be worth up to $540 billion and meet US demand for decades to come.
In the 1990s, lithium was perhaps best known for being the title of a hit song by the band Nirvana. Thirty years later, lithium has become famous as an indispensable element in the multi-billion dollar renewable energy industry. Lithium is a key component of rechargeable batteries that power things like electric cars. The production of other important consumer products like cell phones and solar panels also requires large quantities of lithium.
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Without enough lithium to power these batteries and other innovations, global efforts to combat climate change with renewable energy will be hampered. In a recent reportsaid Jeff Marootian, a senior DOE official: “Lithium is essential to decarbonizing the economy and meeting President Biden’s goals of adopting 50% electric vehicles by 2030.” The problem is that China currently dominates global lithium production.
A global rival like China controlling the world’s lithium supply runs counter to America’s strategic and economic interests. This is why the DOE funds exploration for lithium sources in the United States. As part of that effort, it awarded a $14.9 million grant to Warren Buffett’s Berkshire Hathaway Energy to study the area surrounding the Salton Sea, which straddles Riverside and Imperial counties in the California desert.
California Governor Gavin Newsome was traveling the Salton Sea with President Joe Biden to tout America’s renewable energy industry when he called the region “t “the Saudi Arabia of lithium”. If that seems like a stretch, know that the DOE estimates there is enough lithium under the Salton Sea to provide batteries for more than 375 million electric vehicles (EVs).
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The estimated 18 million tons of lithium would put America in the lead in terms of supplying the global market. This could boost the production of electric vehicles and solar power and could potentially give the United States an unprecedented level of energy independence.
If lithium under the Salton Sea could be mined and traded, America would no longer need to rely on countries like Saudi Arabia and China for its energy or car manufacturing needs. America would also be much richer since the value of lithium is estimated at $29,000 per ton. That would make 18 million gallons of the Salton Sea worth an estimated $540 billion.
A partnership between the US government and Buffett has the potential to increase US lithium production and industry profitability. That’s why Berkshire Hathaway Energy is working hard. The company operates 10 of the Salton Sea geothermal power plants.
It’s not alone. Energy source And Controlled thermal resources also operate in the region. If America becomes the world leader in lithium production, it could lead to a boom in lithium-based companies, which could add trillions or trillions of dollars per year to the U.S. economy.
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This item World’s Largest Reserve of ETR Lithium Discovered Under California’s Salton Sea: $540 Billion Mother Lode Could Meet US Supply Demand for Decades originally appeared on Benzinga.com
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