The Lithium Rush and Its Environmental Impacts
The energy transition is driving a growing demand for batteries, and the U.S. government is pouring billions of dollars into incentivizing lithium mining to meet this surging need. However, this government-supported lithium boom is raising concerns about the environmental and community impacts of these extraction projects, particularly in the already water-stressed regions where most domestic lithium deposits are located.
The Inflation Reduction Act (IRA) has injected the Department of Energy (DOE) Loan Programs Office with around $11.7 billion to support new loans for energy projects, including mines for critical 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 federal funding and support, lithium miners have gained new financial vigor and governmental confidence. “There’s a critical minerals and specifically a lithium rush unfolding, especially, but not exclusively, across the western U.S.,” says Thea Riofrancos, a political scientist at Providence College who specializes in studying the impact of resource extraction on communities.
However, this government-backed lithium boom is not without its risks. Lithium mining poses a range of threats to biodiversity, water supplies, and local communities, depending on the extraction methods used. The three main types of lithium mining – brine evaporation, hard rock mining, and clay mining – all require significant water resources and can contaminate local water systems.
Threats to Water Supplies and Biodiversity
In brine evaporation, groundwater is first pumped to the surface, where 90% of it is evaporated away to concentrate the lithium brine, with additional freshwater needed to complete the extraction process. Hard rock and clay mining often begin with “dewatering,” or removing groundwater to reach the ore, in addition to needing more water to process the ore. These mining methods also require chemicals such as sulfuric acid, which has led to water contamination in cobalt and copper mining operations.
These water-intensive extraction processes are particularly concerning in the western U.S., where most domestic lithium deposits are located and water supplies are already stressed. “There’s ways to tinker around the edges, but ultimately, there’s no mitigating an open-pit mine,” says Patrick Donnelly of the Center for Biological Diversity. “(These mines) cause impacts to the water table, impacts to wildlife, impacts to local and Indigenous communities.”
The Center for Biological Diversity has mapped more than 125 lithium extraction projects in the western U.S. alone, with the majority in various stages of exploration and development. The group has already taken legal action against some proposed mines, alleging that even exploratory drilling could threaten endangered and endemic species in sensitive areas like the Ash Meadows National Wildlife Refuge in Nevada.
The Thacker Pass Mine: A Cautionary Tale
The Thacker Pass mine run by Lithium Americas, set to become the second active lithium mine in the U.S., provides a glimpse into the potential impacts of this government-supported lithium rush. The lithium clay mine is under construction, with most of its Phase 1 costs covered by IRA support, including a $2.26 billion low-interest DOE loan and a $650 million investment from General Motors.
Lithium Americas has outlined plans for water recycling, habitat restoration, and post-mining reclamation to mitigate the mine’s environmental impacts. However, “What I think is concerning is the proliferation of lots of voluntary governance mechanisms that companies don’t have to do,” says Riofrancos. “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.”
Dean Barlese, an elder from the Pyramid Lake Paiute Tribe, opposes the Thacker Pass mine not only because it’s on an Indigenous sacred site but also because of the potential threats to the local ecosystem that his community relies on. “A lot of people think it’s just a desert wasteland,” he says. “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’s concerns highlight the need to consider the impacts of lithium mining on local communities, especially Indigenous groups, and to ensure that their voices and concerns are heard and addressed.
Reducing Lithium Demand: Alternatives and Policy Solutions
As the government pours billions into incentivizing lithium mining, some experts argue that a more holistic approach is needed to address the growing demand for this critical mineral. “Lithium demand could be reduced if investments were made in public transit and walkable communities, so fewer people were buying cars,” suggests Riofrancos.
The IRA does include investments in battery recycling, but it does not incentivize efforts to reduce surging lithium demand. Instead, it supports extraction to meet the demand and helps ensure that the extracting companies can profit.
Another potential solution would be an energy transition that uses less lithium. “One way to reduce demand for lithium (or any battery metals) would be to make smaller batteries, or batteries that are more resource-efficient,” says Riofrancos. Currently, two-thirds of electric vehicle models are SUVs or large vehicles, which require larger batteries and more lithium. Incentivizing smaller, more efficient EVs could lead to fewer lithium mines being needed.
Additionally, the development of alternative battery chemistries that rely less on lithium could also help alleviate the pressure on water-stressed regions. “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 David Boutt, a hydrogeology researcher at the University of Massachusetts-Amherst. “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.”
Calling for Stronger Regulations and Community Engagement
As the government-backed lithium rush continues, it is clear that more robust regulations and enforcement mechanisms are needed to protect water resources, biodiversity, and local communities. The current reliance on voluntary corporate governance and insufficient environmental impact assessments is not sufficient to address the scale and complexity of the challenges posed by this extraction boom.
Riofrancos emphasizes the need for “regulation that’s binding; that’s enforceable; that carries sanctions, fees, punishments, fines, whatever, if the regulations are not obeyed.” This, combined with sustained community protests and advocacy, could help push the mining industry to adopt more responsible practices.
Ultimately, the development of lithium mines must be balanced with the need to protect the environment and respect the rights and concerns of local and Indigenous communities. As the U.S. government continues to invest in the critical minerals supply chain, it must also prioritize environmental justice and community engagement to ensure a just and sustainable energy transition.
