USGS Finds Staggering Lithium Reserves, Potentially Reshaping Global Lithium Market
A study released by the US Geological Survey (USGS) on October 21 indicates that the Smackover Formation in southwestern Arkansas may contain vast amounts of lithium, with predictive models estimating reserves between 5 and 19 million tons. If commercially recoverable, these lithium reserves could exceed the International Energy Agency’s (IEA) projected 2030 global demand for lithium in electric vehicles by more than nine times.
The study, conducted jointly by the USGS and the Arkansas Department of Energy and Environment, utilized innovative methods combining water testing and machine learning. Additionally, the Smackover Formation dates back to the Jurassic period and is renowned for its porous limestone structure, spanning Arkansas, Louisiana, Texas, Alabama, Mississippi, and Florida.
David Applegate, director of the USGS, emphasized that lithium is a critical mineral for the energy transition, stating that increased US lithium production could reduce dependency on foreign imports and bolster supply chain stability. Katherine Knierim, geologist and lead researcher of the study, remarked that this research presents the first estimate of the total lithium in the Smackover Formation, noting that the region holds more than enough lithium to replace US imports. However, she cautioned that these estimates are based on in-place assessments rather than technically recoverable quantities.
As the global shift to electric vehicles and renewable energy technologies continues to accelerate, the demand for lithium, a key mineral for battery production, has been rising. However, the US currently has limited capabilities to extract, refine, and produce lithium domestically, relying on imports for 25% of its lithium needs, primarily from Chile and Argentina. By contrast, China dominates the processing of lithium for electric vehicle batteries.
This discovery follows a series of significant lithium discoveries in the United States.
Last year, the USGS discovered a lithium deposit larger than Bolivia’s salt flats. A new study estimates that the McDermitt Caldera, located on the Nevada-Oregon border, harbors between 20 to 40 million metric tons of lithium deposits, nearly double Bolivia’s upper limit of 23 million tons. If this rough estimate proves accurate, it could alter the global lithium market, impacting prices, supply security, and geopolitical dynamics.
A few months later, the US Department of Energy uncovered a massive lithium deposit beneath California’s Salton Sea, estimated to hold 18 million tons of lithium. According to the Department of Energy, with technological advancements, the region’s total resources could yield over 3,400 kilotons of lithium, valued at up to $540 billion, enough to support more than 375 million electric vehicle batteries—exceeding the total number of vehicles currently on US roads.
Clean Energy
Electric Cars
Energy Metals
Lithium