(The Center Square) – Nevada Lithium announced that its Nye County lithium mine is worth quadruple initial estimates — over $6.8 billion.
The Lithium boom in Nevada has seen the industry become one of the state’s most important exports — but it is not clear how much does the “white gold” benefits the average Nevada resident.
“Developing this vital resource will not only complement existing energy sources but also play a key role in advancing our shared goal of achieving U.S. energy independence,” said Gov. Joe Lombardo (R-NV) in an April press release on lithium. “Nevada has already become a hub for energy technology and remains committed to attracting and driving continued growth in this space.”
The burgeoning industry has seen support among Nevada’s political leaders as the raw material shot up to become the state’s 7th largest export in 2023, as per the Governor’s Office of Economic Development, or GOED. Both Nevada U.S. Senators recently toured a Northern Nevada mine in the Thacker Pass region.
Used in rechargeable batteries, lithium has become a key ingredient in the nearly $100 billion U.S. electric vehicle market.
While also used for boron, another raw material found in heat-resistant materials and fiberglass, Nevada Lithium’s Bonnie Claire site is primarily for the far more valuable lithium.
“Bonnie Claire has emerged as one of the world’s largest and highest grade sedimentary hosted lithium and boron deposits,” said Nevada Lithium CEO Stephen Rentschler in a press release. “In addition, the Company has identified several areas for potential value enhancement.”
The Nye County mine is expected to pay out Nevada Lithium within 3 years of operation — and with an anticipated lifespan of 61 years. Annually, Nevada Lithium could extract over 62,000 tones of lithium.
The Bonnie Claire mine is located along I-95, in an area the Nevada Lithium mining company cited as 1.25 times the size of Manhattan Island. The $6.8 billion valuation comes as a surprise compared to the $1.5 billion initial estimate in 2021.
Nye County’s average income is less than the Nevada state average, just shy of $56,000 as per Data USA. spread across the county’s roughly 53,000 residents.
The state argues that lithium mining will benefit the average Nevadan. Between 2015 and 2030, lithium-related jobs in Nevada are outgrowing the rest of the country at twice the speed, although the GOED did not specify how many jobs this was.
And neither has Nevada Lithium yet to specify how many jobs the Bonnie Claire project will produce for the state. Still, the industry is seen as a valuable part of the state’s economy — worth around $8 billion in 2021.
Nevada Lithium’s Bonnie Claire project joins several other mining companies in the Southern Nevada mining region.
The Nevada Lithium company estimated the $6.8 billion figure based on current lithium prices of around $24,000 per ton, which the company said would likely be the lowest lithium cost for the immediate future. With the mine and its value looking set to rise even higher, Nevadans in Nye County and across the state will be hoping to see some returns themselves.
