Critical Minerals Exploration
Discoveries for domestic EV Batteries
The United States’ rich geological landscape and infrastructure present a robust foundation for developing critical mineral resources essential for modern energy and technology applications.
Lithium
There are two types of lithium deposits in the Western US: brine and clay-rich sedimentary deposits. Clay-rich sedimentary deposits form from the weathering of lithium-rich volcanic rocks. In large volcanic calderas or sedimentary basins, volcanic ash and pyroclastic materials accumulate and alter over time into clay minerals. Lithium, released during weathering or hydrothermal alteration, is incorporated into these clays, with the depositional environment concentrating the lithium through sedimentation and chemical processes. Jindalee Lithium’s McDermitt project is hosted in the volcanic caldera, a major benefit according to Ian Rodger, the CEO: “Lithium sedimentary deposits are the copper porphyries of the lithium world—huge, low-grade, generational assets. Our deposit is unique in that it outcrops at the surface and the rock is very soft, so no blasting or grinding is required. Mining will be very cheap and we expect the waste-to-ore ratio to be around one.”
The dynamic geology of Nevada provides fertile ground for exploration, allowing for clay and brine hosted discoveries, and sometimes both, like at Grid Battery Metals’ Clayton Valley, detailed Tim Fernback, president and CEO: “In the southern part of our project, there is more potential for brine as it gets closer to Albemarle’s Silver Peak mine, North America’s only producing lithium brine mine. To the north, there is significant potential for claystone lithium-bearing deposits at depth. We conducted geophysics and sampling, and now it is time to add more exploratory drill holes in the areas with high lithium signatures based on our understanding of the underground geology.”
As host of Albemarle’s Silver Peak mine, Nevada is the most significant player in lithium exploration. There is good reason for this in districts like Clayton Valley, said Steve Hanson, president and CEO of ACME Lithium: “The region has a history of lithium production since 1966, offering valuable infrastructure like roads, power, and a skilled workforce. The proximity to Albemarle’s operation means we are not starting from scratch; there is already community and employment support for lithium production.”
Nick Horsley, president and CEO of American Salars Lithium, agrees: “Nevada has everything you need within reach. There is power infrastructure and natural gas in the vicinity as well. If we were to move toward production, a large solar farm could be implemented; Nevada’s desert is perfect for that. The access to infrastructure in this area makes it a fantastic place.”
Manganese
The geologic history of the US also fed into the creation of Minnesota’s Emily District, a major manganese-producing area for the US during the 1940s to 1960s, explained Brian Savage, CEO, Electric Metals: “The deposition of manganese dates back 1.8 billion years when it was an oceanfront area. An oxygenation event occurred which caused the precipitation of iron and manganese, forming these deposits.”
Electric Metals was one of the first companies to revisit and consolidate the land package at Emily and plans to produce 300,000-500,000 t/y, with 100,000 t/y of high-purity manganese sulfate monohydrate (HPMSM), which is used in cathodes for electric vehicle batteries. “Establishing domestic production in the U.S. is crucial for national security and carbon reduction, and it positions us to become a leader in producing HPMSM used in electric vehicle batteries”, Savage said.
Rare Earths
Geologically, the US’s global share of rare earth elements is 1.3%. However, the Biden administration’s 25% tariff, effective in 2026, on Chinese permanent magnets is accelerating exploration for these elements.
American Rare Earths is advancing the Halleck Creek project in Wyoming, with the goal of going into production just after Biden’s tariff comes into effect. “We aim for an output of 1,200 t/y. Our approach is designed to provide cost and structural advantages, while focusing on developing existing infrastructure with a modular design. There is a strong need for a domestic rare earth supply chain, especially in processing”, said Donald Swartz, the former CEO.
Nickel
To meet the demand for batteries, S&P Global estimates that 20 times more nickel will be needed than what is currently mined. Lithium-ion batteries contain five times more nickel than lithium. Finding nickel deposits is challenging, making it a bottleneck in EV production. Explorers like Alaska Energy Metals are working to reduce the bottleneck.
“Stantec calculated our mineral resource, with a conceptual pit shell at a 0.2% nickel equivalent cut-off. The higher-grade zones, exceeding 0.25% nickel equivalent with some over 0.3%, are concentrated in the center and trend southeast. The deposit contains over 8 billion pounds of nickel, along with copper, cobalt, platinum, and palladium”, said Greg Beischer, CEO and president of Alaska Energy Metals
Large nickel deposits require abundant magma because it contains dissolved nickel. Millions of years ago in Alaska, magma repeatedly rose in layers, forming a large, bowl-shaped mafic-ultramafic intrusion. Over time, this magma reached the earth's surface, creating a vast basalt province. As the magma interacted with sulfur from sedimentary rocks, nickel sulfide droplets formed and joined to create rich sulfide deposits. “The Eureka deposit sits above the base of this massive intrusion, resembling a large cloud of disseminated nickel sulfide. We are currently drilling to locate high-grade pods within the conduits or at the base of the intrusion,” explained Beischer.
With increasing government support, including tariffs to encourage domestic production and ongoing advancements in mining and processing technologies, the US mining sector is adapting to meet the challenges of the green energy transition. This momentum signifies not just a response to immediate demand but a long-term commitment to a sustainable and self-reliant supply chain.
Article header image by Robert Murray at Unsplash