Massive Lithium Discovery Beneath the McDermitt Caldera

A groundbreaking geological discovery is making headlines: the United States may be sitting on one of the planet's largest known lithium deposits, buried beneath the McDermitt Caldera, an ancient supervolcano straddling the Nevada–Oregon border.

Recent analyses and renewed attention in 2025–2026 suggest the caldera—formed around 16 million years ago after a massive volcanic eruption—contains lithium-rich clay layers with an estimated:

20 to 40 million metric tons of lithium

At prevailing market prices (≈ $37,000 per metric ton for battery-grade lithium carbonate), the estimated in-ground value could reach:

$1.5 trillion or more

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The Science Behind the Discovery

The deposit formed when lithium-enriched volcanic fluids and ash settled into clay sediments after the supervolcano collapsed.

Researchers from institutions including:

• University of Oregon
• Lithium Nevada (now part of Lithium Americas)
• International geological partners

have identified unusually high lithium concentrations — in some cases double that of many global clay deposits.

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🔑 Key Project: Thacker Pass

Located within the caldera, Thacker Pass is already under development.

Resource Highlights

• ~533 million tonnes of ore
• Average grade: ~0.29% lithium
• Equivalent to 1.5+ million tonnes of contained lithium (just one portion of the caldera)
• Broader caldera estimates suggest significantly larger total resources

Timeline

• Phase 1 production: Targeted for late 2027
• Full operations: Expected by 2028

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Why This Matters in 2026

Lithium is critical to the global energy transition:

🔋 Electric Vehicles (EVs)

One of the fastest-growing demand drivers worldwide.

🌞 Renewable Energy Storage

Grid-scale battery systems supporting solar and wind power.

🤖 AI & Data Centers

Massive power consumption requires reliable, scalable battery infrastructure.

⛓ Blockchain & Crypto Mining

Energy-intensive operations could benefit from cheaper domestic battery supply.

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🇺🇸 Strategic Importance for the U.S.

The United States currently imports most of its lithium (primarily from Australia, Chile, and China-processed sources).

A large domestic resource like McDermitt could:

• Reduce strategic vulnerability
• Lower costs for U.S. manufacturers
• Accelerate clean technology adoption
• Support AI infrastructure growth

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Challenges Ahead

While the discovery is promising, several hurdles remain:

⚙ Extraction Complexity

Clay-based lithium requires specialized processing — more complex than brine or hard-rock extraction.

🌍 Environmental Concerns

• Water usage in arid Nevada
• Impact on local ecosystems
• Indigenous land rights concerns (Thacker Pass has faced protests)

📉 Market Dynamics

A large supply increase could reduce global lithium prices, lowering the real economic value of the estimated $1.5T figure.

🏛 Permitting & Politics

Balancing fast-tracking under U.S. critical minerals policy with environmental and regulatory reviews.

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⚠ Important Note

The "$1.5 trillion" figure represents an in-situ valuation.
Actual extractable value depends on:

• Technology
• Production costs
• Market demand
• Long-term pricing conditions

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Looking Forward

If fully developed, the McDermitt Caldera could position the U.S. as a global lithium superpower, reshaping supply chains and accelerating electrification and AI-driven economic growth.

This volcanic treasure highlights an important lesson:

Some of the world’s most valuable resources may be hidden in unexpected places — sometimes right beneath our feet.

Stay tuned for updates on Thacker Pass development and new resource estimates throughout 2026.