Beneath the Salton Sea: $540 Billion Lithium Discovery Could Transform U.S. Energy Independence

Apr 6, 2025

Highlights

  • The Salton Sea contains an estimated 18 million metric tons of lithium, worth approximately $540 billion, potentially enabling U.S. battery production for 375 million electric cars.
  • Three major companies are advancing lithium extraction projects in the region, with local communities balancing hopes of economic revival against environmental concerns.
  • This lithium discovery represents a strategic opportunity to reduce U.S. reliance on foreign mineral suppliers, particularly China, and accelerate the clean energy transition.

A monumental discovery beneath Californiaโ€™s Salton Sea could redefine the future of American energy independence. Buried deep in the geothermal brine under this shrinking inland lake lies a treasure trove of lithiumโ€”an estimated 18 million metric tons of itโ€”worth about $540 billion. The U.S. Department of Energy confirmed the scale of the find in late 2023, prompting a surge of activity and ambition from both public agencies and private enterprises aiming to tap into what could be the countryโ€™s ticket to lithium self-sufficiency.

Lithium, often dubbed โ€œwhite goldโ€ for its silvery hue and vital role in powering everything from electric vehicles (EVs) to smartphones and large-scale battery storage, is at the heart of the clean energy revolution.

As reported (opens in a new tab) by Newsweek, with the amount of lithium buried beneath the Salton Sea, the U.S. could potentially produce batteries for up to 375 million electric carsโ€”enough to meet domestic demand for decades. According to Michael McKibben, a geosciences expert at UC Riverside, the areaโ€™s existing geothermal power infrastructure could already support the annual production of 115,000 metric tons of lithium carbonate equivalent, sufficient for nearly 4 million EVs each year.

This lithium-rich basin in Southern Californiaโ€™s Imperial Valley is just one piece of a broader domestic puzzle. When combined with Nevadaโ€™s claystone reserves in the McDermitt Caldera and lithium-laced brines in Arkansasโ€™ Smackover Formation, the U.S. could finally extricate itself from reliance on foreign suppliersโ€”chiefly Chinaโ€”for this critical mineral. McKibben called it one of the largest lithium brine deposits in the world, a resource capable of โ€œmaking the United States completely self-sufficient in lithium.โ€

Yet the stakes go far beyond economics. The Salton Sea itself has a troubled past and a fragile present. Formed accidentally in 1905 by a breach in the Colorado Riverโ€™s irrigation canal, the lake has spent more than a century plagued by environmental decay. Rapid evaporation and rising salinity have made it a toxic basin, where exposed lakebed dust worsens air quality and imperils nearby communities. Now, the prospect of large-scale lithium extraction introduces both a promise of revitalization and a risk of further degradation.

In Imperial Countyโ€”one of Californiaโ€™s most economically challenged regionsโ€”the news of potential job creation and investment has sparked hope. โ€œLocal community members have been enthusiastic,โ€ said Luis Olmedo, Executive Director of Comite Civico del Valle (CCV), a grassroots nonprofit in Brawley. But Olmedo is also cautious, noting that many of the promises heard in public hearings and media soundbites are not legally binding. โ€œThese are not guarantees enforceable by local communities,โ€ he warned.

Concerns extend to water usage, air quality, hazardous waste, seismic risk, and impacts on tribal lands. Locals are wary of an ambitious development agenda that could worsen their quality of life in a region already battling high asthma rates and restricted water allocations from the dwindling Colorado River.

California Governor Gavin Newsom has likened the Salton Sea area to the โ€œSaudi Arabia of lithium,โ€ championing its potential to crown the state as a global leader in green tech. The region's rebranding as โ€œLithium Valleyโ€ underscores that ambition. Local leaders are pushing for up to 80 percent of lithium revenues to be reinvested directly into the community for infrastructure upgrades, job training, and economic uplift.

Three major players have taken the lead in staking their claims along the Salton Seaโ€™s edge. EnergySource Minerals received environmental clearance in 2021 to build a Direct Lithium Extraction (DLE) facility at the Hudson Ranch geothermal plant, now run by Cyrq. Berkshire Hathaway Energy Renewablesโ€”managing 10 of the regionโ€™s 11 geothermal plantsโ€”has also entered the fray. Meanwhile, Controlled Thermal Resources (CTR) is advancing its ambitious seven-phase Hellโ€™s Kitchen project, approved by Imperial County in early 2024.

But not all has gone smoothly. CCV and the environmental nonprofit Earthworks challenged the environmental review for Hellโ€™s Kitchen, arguing it overlooked risks to air and water. While a trial court dismissed the suit in February 2025, Olmedo confirmed that an appeal is still in motion.

Despite the industryโ€™s assurances of employing closed-loop systems that generate no landfill waste or air emissions, skepticism persists. Residents worry that digging into this toxic lakebed could unleash more of the hazardous dust already tied to respiratory illnesses. Every new disturbance risks exacerbating public health issues as the lake dries up.

Thereโ€™s also an international angle to consider. China, the current world leader in lithium production, has recently curbed exports of sorbentsโ€”a key material in lithium extractionโ€”creating fresh anxiety about the U.S. supply chainโ€™s resilience. Thatโ€™s why the Department of Energy's Jeff Marootian called this discovery a โ€œonce-in-a-generation opportunityโ€ to bring the lithium supply chain home.

All eyes are now on this dusty corner of California, from environmentalists and policymakers to investors like Warren Buffett and Teslaโ€™s Elon Musk. What unfolds next at the Salton Sea could shape not just the future of clean energy, but the economic and ecological destiny of a region long in need of both investment and protection.

Search
Recent Reex News

USTDA Backs Monte Muambe: Strategic Signal for U.S. Rare Earth Diversification - But Still Early-Stage Execution

Beijing Reinforces Central Discipline Ahead of "15th Five-Year Plan" - Implications for Strategic Minerals

China Places Japanese Entities on Export Control Lists, Citing Security and "Re-Militarization" Concerns

Shenghe Resources Strengthens Ties with Chengdu Research Institute, Reinforcing Strategic Minerals and Green Processing Push

Baogang Rare Earth Automotive Steel Clears OEM Coating Certification - A Subtle but Strategic Downstream Breakthrough

By Steven

0 Comments

Submit a Comment

Your email address will not be published. Required fields are marked *

Straight Into Your Inbox

Straight Into Your Inbox

Receive a Daily News Update Intended to Help You Keep Pace With the Rapidly Evolving REE Market.

Fantastic! Thanks for subscribing, you won't regret it.

Straight Into Your Inbox

Straight Into Your Inbox

Receive a Daily News Update Intended to Help You Keep Pace With the Rapidly Evolving REE Market.

Fantastic! Thanks for subscribing, you won't regret it.