Elon Musk could greatly benefit after a $1.5 trillion cache of precious metal was discovered hidden inside a massive supervolcano.
A massive lithium deposit has been discovered beneath a long-dormant supervolcano in the United States.
This could mark a game-changing moment for Elon Musk and the electric vehicle (EV) industry.
The McDermitt Caldera is a 45-by-35-kilometer volcanic formation located between Oregon and Nevada.
It is now believed to contain one of the world’s largest known lithium reserves, valued at an estimated $1.5 trillion.
Scientists unearth world’s largest lithium deposit
Geological researchers have confirmed that drill samples from the McDermitt Caldera reveal unusually high concentrations of lithium-bearing clay minerals.
Some samples contained up to 2.4 weight percent lithium, vastly surpassing the global average of just 0.4 percent.
If the full extent of the deposit lives up to projections, it could replace Bolivia’s Salar de Uyuni as the planet’s top lithium source.
The McDermitt Caldera was formed over 16 million years ago by a massive volcanic eruption.
Over time, its sediment layers evolved into lithium-rich clay due to centuries of geochemical activity within the ancient lakebed.
EV revolution depends heavily on lithium supply
Lithium is a critical component of the rechargeable batteries that power most modern electronics, including electric vehicles.
As the world increasingly embraces cleaner energy alternatives, the demand for lithium has exploded.
In particular, lithium-ion batteries serve as the backbone of EV production, making the newly found deposit crucial for manufacturers like Tesla.
Experts estimate the McDermitt Caldera contains enough lithium to produce up to 600 million electric vehicles.
This discovery could significantly reshape the future of America’s EV industry.
Elon Musk could gain massive profits from $1.5 trillion precious metal hidden in supervolcano
Tesla, under Elon Musk’s leadership, has been one of the leading producers of electric cars.
Though profits fell 70%, this lithium find could revive the company’s production and strengthen its position in the EV market.
Musk has been vocal about the need for a more stable domestic lithium supply chain.
Tesla already operates its own lithium refinery in Texas, aiming to produce up to 50 gigawatt-hours (GWh) of battery-grade lithium annually.
If the McDermitt Caldera is developed, Tesla could reduce its dependency on imported lithium.
This would help shield the company from rising costs linked to global trade tensions.
U.S. lithium independence on the horizon
The lithium deposit could greatly impact American manufacturing beyond just benefiting Tesla’s operations and growth.
International trade policies, particularly under former President Trump, have raised tariffs and restricted supply access.
This discovery presents a unique chance for the U.S. to develop a self-sufficient lithium supply network.
Experts estimate that as much as 20 million metric tons of lithium may lie beneath the caldera.
Properly managed, this discovery could make the U.S. a major lithium producer, reducing dependence on foreign sources.
Environmental and ethical debates emerge
Despite the excitement, the McDermitt Caldera lithium project faces controversy.
Indigenous groups like the People of Red Mountain warn about mining’s environmental and cultural impacts.
They call the mining “green colonialism,” risking irreversible harm to ecological and spiritual sites.
The tension between environmental justice and clean energy expansion is likely to intensify as corporate interest in the site grows.
Companies must navigate both regulatory and ethical challenges as they explore the deposit’s potential.
Australia, another top lithium-producing nation, may face fresh competition as the U.S. prepares to tap into its newly confirmed resource.
China’s BYD currently leads global EV production, but an American boost in lithium output could reshape global dynamics.
Jeff Bezos has also entered the EV race with Slate Auto, signaling that Musk might not be the only billionaire eyeing this resource-rich opportunity.