America’s lithium rush faces new hurdles By EPN Staff Lithium mining in the United States, particularly in Nevada, is seeing renewed momentum as electric vehicle and clean energy industries accelerate. Projects like Thacker Pass and Rhyolite Ridge aim to secure domestic lithium supply but face challenges ranging from regulatory hurdles to fluctuating market conditions. Why it matters Lithium is a critical mineral for energy storage technologies. It powers rechargeable batteries used in electric vehicles, smartphones, grid-scale storage, and military applications. As the U.S. seeks to reduce its reliance on foreign mineral imports – currently sourcing most lithium from global leader Australia, as well as Chile and China – expanding domestic production has become a strategic priority. According to the U.S. Geological Survey, the U.S. has about 6% of the world’s lithium reserves, primarily in Nevada and North Carolina. However, production remains limited compared to global leaders. The bigger picture Efforts to increase domestic lithium mining are constrained by water use regulations, permitting delays and local resistance. For example, the Thacker Pass project, one of the nation’s largest proposed lithium mines, was recently ordered to halt unauthorized groundwater use. Meanwhile, lower lithium prices have slowed progress on other sites, including Rhyolite Ridge. Environmental concerns also play a role, as lithium extraction in the U.S. must meet stricter sustainability and labor standards than operations in South America’s “lithium triangle,” where brine evaporation techniques have raised concerns about aquifer depletion. While Australia leads in hard rock mining and Chile in brine extraction, U.S. producers face both geological and regulatory differences. The U.S. mining approach often requires more comprehensive environmental reviews under state and federal laws. As such, the timeline for bringing projects online can be significantly longer. Additional context Lithium demand is expected to grow fourfold by 2030, driven by EV adoption and grid storage expansion. According to BloombergNEF, lithium-ion battery demand reached over 950 GWh globally in 2023, with automotive applications accounting for the majority. In the U.S. alone, sales of EVs surpassed 1.4 million units in 2023, each typically containing 8-10 kilograms of lithium. Common applications of lithium (2023 estimates): Batteries (EVs, electronic devices, electric tools, grid storage): ~87% Ceramics and glass: ~4% Lubricating greases: ~2% Air treatment: ~1% Continuous casting mold flux powders: ~1% Medical: ~1% Other uses: ~4%