Lithium Rush Fueled by Government Support, but at What Cost?
The energy transition is driving surging demand for batteries, and the U.S. government is pouring billions of dollars into incentives to mine lithium to speed the shift away from fossil fuels. While this government-backed lithium boom aims to bolster domestic supply chains and support the clean energy economy, it is also raising concerns about the environmental impact on water resources and fragile ecosystems.
The Lithium Extraction Conundrum
Add lithium to water in a chemistry lab, and you’ll get an incendiary reaction. The same might be said of opening new lithium mines: The prospect can spark conflicts when it comes to water. Mining companies and the U.S. government are investing heavily in increased extraction for lithium, a critical component in renewable energy technologies like electric vehicle batteries and large-scale energy storage.
The Inflation Reduction Act (IRA) injected the Department of Energy (DOE) Loan Programs Office with about $11.7 billion to support new loans for energy projects, including mines for needed metals like lithium. This builds on earlier Bipartisan Infrastructure Law (BIL) grants for battery material supply chains. The IRA also offers tax credits of up to $7,500 on eligible electric vehicles, further driving demand for lithium by the auto industry.
With this influx of government funding, lithium miners have gained new financial strength and votes of confidence. However, some are deeply concerned about the environmental impact this lithium rush may have, especially on water supplies in the arid Western United States where most domestic deposits are located.
Risks to Water and Biodiversity
Lithium mining poses a range of risks to biodiversity and groundwater supplies, depending on the extraction methods used. There are three main types of lithium mining:
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Brine Evaporation: Groundwater is first pumped to the surface, where 90% of it is evaporated away to concentrate the lithium brine. Additional freshwater is then needed to complete the extraction process.
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Hard Rock Mining and Clay Mining: These methods often begin with “dewatering,” or removing groundwater to reach the ore, in addition to needing more water to process the ore. They also require chemicals like sulfuric acid, which can lead to water contamination.
These water-intensive processes are especially concerning in the already water-stressed Western U.S., where most of the proposed lithium projects are located. A Center for Biological Diversity map shows more than 125 lithium extraction projects in the region, with the majority in various stages of exploration and development.
Environmentalists and local communities have resisted new mines, citing risks to biodiversity and groundwater supplies. In a lawsuit against a Rover Metals exploration project, the Center for Biological Diversity and Amargosa Conservancy alleged that even exploratory drilling near springs in the Ash Meadows National Wildlife Refuge in Nevada would threaten endangered and endemic species.
“We need lithium as a part of our transition off of fossil fuels, but it can’t come at the expense of biodiversity or our most precious protected areas,” says Patrick Donnelly of the Center for Biological Diversity. “Some places have to be off-limits to resource extraction, and Ash Meadows National Wildlife Refuge is at the top of the list.”
The Thacker Pass Mine: A Microcosm of Concerns
The Thacker Pass mine, run by Lithium Americas, is on track to become the second active lithium mine in the United States. This lithium clay mine in far northern Nevada may be indicative of what’s to come as more government-fueled mines pop up.
The project’s Phase 1 construction costs are largely covered by IRA support, with General Motors investing $650 million in exchange for the mine’s lithium. The DOE also provided a conditional $2.26 billion low-interest loan, saying it will provide enough lithium for 800,000 electric vehicles per year.
Lithium Americas plans to recycle and reuse withdrawn water an average of seven times, with Phase 1 water consumption estimated at around 929 million gallons per year. The company has also outlined habitat restoration and post-mining reclamation plans.
However, as political scientist Thea Riofrancos points out, “What I think is concerning is the proliferation of lots of voluntary governance mechanisms that companies don’t have to do. What’s important — and it sounds old-fashioned, maybe — is regulation that’s binding; that’s enforceable; that carries sanctions, fees, punishments, fines, whatever, if the regulations are not obeyed.”
Riofrancos believes the IRA-supported DOE loan program represents a missed opportunity to tie robust regulations to mining projects, as the program is “very light on guardrails and requirements for loan recipients.”
Balancing Needs and Impacts
The Thacker Pass project has also faced opposition from Indigenous communities, like the Pyramid Lake Paiute Tribe, who are concerned about the impacts on their sacred sites and intertwined local ecosystem.
“A lot of people think it’s just a desert wasteland,” says tribal elder Dean Barlese. “But the medicines we use are still out there. As Native people, we still gather our food, roots, berries — we’ve survived here for thousands of years.”
Barlese and others argue that the environmental and cultural costs of lithium mining are too high, even with mitigation efforts. “I would encourage the public to really look into the devastation that getting a bit of lithium does,” he says.
As the lithium rush intensifies, experts suggest there may be other ways to reduce demand and the need for new mines. Riofrancos points to the potential of public transit, walkable communities, and smaller, more resource-efficient batteries as alternatives that could lessen the pressure on lithium supplies.
“Given the complexity of getting a permit, of getting the social license, of having everything in place, it’s going to take a long time (to open new mines),” says hydrogeologist David Boutt. “And perhaps by the time we get to the point where we are developing those resources, we’ll have different battery technology where we’re not as reliant on lithium.”
Balancing the critical need for lithium to support the energy transition with the environmental and social costs of mining will be a complex and ongoing challenge. As the government pours billions into boosting domestic lithium supplies, careful regulation, community engagement, and technological innovation will be essential to mitigate the impacts and ensure a more sustainable path forward.
