Nevada’s Critical Role in the Global Lithium Economy and the Looming Threat of World War III

In 2009, as I sat in Bill Farr’s living room, he shared a vivid memory from the early days of Atomic Testing in Nevada. He described standing outside Dick Grave’s diner and casino in Sparks, witnessing the southern horizon ablaze with a brilliant yellow glow following a recent detonation by the National Atomic Testing Agency.

This visual stayed with me, leaving me to wonder about the experience of witnessing such a monumental event. Now, in 2023, with the world hurtling towards the precipice of World War III, the opportunity to witness such a phenomenon may be more real than ever.

The Biden administration has designated the University of Nevada, Reno (UNR), as a 2023 Technology Hub, recognizing its pioneering work in lithium batteries and other electric vehicle (EV) materials. This designation has inadvertently made Northern Nevada a strategic target for a potential nuclear strike from China or Russia.

As part of a larger initiative, $500 million in grants will be distributed among the 31 designated Technology Hubs across the nation. This funding stems from a $10 billion authorization in the CHIPS and Science Act, aimed at catalyzing investments in cutting-edge technologies such as artificial intelligence, quantum computing, and biotech.

The goal is to decentralize tech investment, which has been concentrated in a handful of U.S. cities.

The Nevada Lithium Batteries and Other EV Material Loop Tech Hub, led by UNR, envisions establishing a self-sustaining and globally competitive lithium lifecycle cluster. This cluster will encompass the extraction, processing, manufacturing, and recycling of lithium and other materials vital to electrification.

By aligning innovation and economic development efforts with various stakeholders, this Tech Hub aims to position Nevada as a dominant player in the global lithium supply chain, fortifying our battery economy and expediting the transition towards sustainable energy.

The White House emphasizes that these Tech Hubs will drive technological advancements and stimulate economic growth, bolster national security, and create job opportunities. UNR’s recent acceptance into the National Science Foundation’s Regional Innovations Program, coupled with a $1 million grant for lithium battery research, further underscores the university’s pivotal role in this endeavor.

Research from UNLV’s business school reveals that the lithium industry currently employs around 9,000 individuals in Nevada, a number expected to surge by 2030. Anticipated lithium demand is set to increase over sixfold by 2030 compared to 2020.

In line with President Biden’s vision for an energy-driven future, the Ioneer mine secured a conditional $700 million loan from the U.S. Energy Department.

While Nevada currently hosts one operational lithium mine, two more may come online in rural areas within the next five years, pending the resolution of existing legislation and environmental concerns. These projects are contested due to their potential impact on local ecosystems, including snails, toads, sagebrush, and buckwheat.

As Nevada emerges as a linchpin in the global lithium economy, the state finds itself on the cusp of both unprecedented technological progress and the ominous shadow of geopolitical instability. The journey ahead promises to be fraught with challenges but also holds the potential for groundbreaking advancements that could shape the course of our shared future.