Vast Lithium Deposit at Thacker Pass Could Reshape 2025 Energy Transition

A substantial lithium deposit identified within the McDermitt Caldera, an ancient volcanic crater spanning the borderlands of Nevada and Oregon, has been formally announced as a potentially pivotal resource for the 2025 energy transition. Research published in the journal Science Advances suggests this geological feature could contain between 20 and 40 million metric tons of lithium, potentially ranking it as the world's largest known deposit. This resource is critical for scaling up the production of lithium-ion batteries essential for electric vehicles and large-scale energy storage systems central to decarbonization efforts.

The lithium-rich zone is concentrated in Tucker Pass, a depression approximately 30 meters lower than the surrounding area, where analysis shows a concentration of 1.3 to 2.4 percent lithium by weight. This concentration is nearly double that found in typical hard-rock lithium deposits. The deposit's formation dates back over 16 million years to a massive volcanic eruption and subsequent caldera collapse. Following this event, mineral-rich hydrothermal fluids leached lithium from the volcanic rock, depositing it into the sediments of a subsequent lakebed.

Lithium Americas Corporation (LAC), in partnership with General Motors (GM), is spearheading the development of the Thacker Pass project, with GM holding a 38 percent stake. The sheer tonnage, high concentration, and relatively flat geology of this sedimentary clay deposit suggest a potentially lower mining cost compared to conventional hard-rock extraction. This development is strategically significant for the United States, which currently imports over 95 percent of its lithium requirements, thereby exposing domestic supply chains to vulnerabilities.

Phase 1 of the project is designed to produce 40,000 metric tons of battery-quality lithium carbonate annually, sufficient to power the batteries for an estimated 800,000 electric vehicles per year. The U.S. Department of Energy has reinforced this strategic importance by providing a $2.26 billion loan. The technical process involves refining the clay and using chemical separation techniques to isolate the lithium, with an imperative to minimize water usage and waste generation. The project's estimated consumptive water requirement for Phase 1 is approximately 2,850 acre-feet per year, a figure that has drawn concern regarding the Quinn River Valley aquifer.

Lithium Americas has committed to sustainability by designing a zero liquid discharge (ZLD) process aimed at maximizing water recycling, targeting an average of seven reuse cycles within the production cycle. However, the project faces ongoing scrutiny regarding environmental and regulatory compliance. The Nevada Division of Water Resources issued a “CEASE AND DESIST” order to Lithium Nevada Corp. on June 20, 2025, prohibiting pumping from the Quinn #1 well. Furthermore, the site is located on ancestral lands of the Northern Paiute and Western Shoshone people, prompting concerns from local tribes over potential contamination and impacts to cultural sites. Environmental groups have also initiated legal challenges, including a lawsuit filed on February 26th, 2021, citing insufficient analysis of severe environmental impacts.

The immediate focus for 2025 involves navigating these environmental and regulatory frameworks as the extraction model for this sedimentary resource is relatively novel. The project timeline targets mechanical completion of the Phase 1 processing plant by late 2027, with detailed engineering work reported as over 80 percent complete as of September 30, 2025.