Silver Peak Lithium Mine Developer: Albemarle Corporation Location: Esmeralda County, Nevada Prepared February 2018 Background brine from an old lake bed that is then evaporated in Opening in 1864, the Silver Peak Mine was large, shallow ponds to expose the lithium. These initially a silver mine. However, a century later, evaporation ponds take up thousands of acres and 12 miners discovered lithium in the water and it was in to 18 months of evaporation are required before the this way that the Silver Peak Mine became the lithium is concentrated enough for offsite factory lithium mine that we know currently. Today, the processing (Walker, 2017). Silver Peak Mine produces 3,500 metric tons of The mine receives its name from the town lithium carbonate per year with the capacity to nearest to it, Silver Peak. Silver Peak is just four produce 6,000. The mine, after many changes in miles away from the mine and is 215 miles northwest ownership, is now owned by Albemarle Corporation, of Las Vegas. As of 2010, only 107 people resided in a mining company based in Charlottesville, NC that the town. Founded in 1863 as an outpost for silver is one of four global mining conglomerates that and gold miners, Silver Peak is one of Nevada’s control the majority of the world’s lithium supply. oldest mining communities. The Environmental The mine employs 80 full time workers and about 20 Assessment for the mine’s proposed expansion more contractors. describes the area around Silver Peak as “sparsely In 2010, the then owner of the Silver Peak Mine, populated with between 0 to 40 people per square Rockwood Lithium, announced a doubling of their mile, within at least an 80-mile radius...” (DOE, 2010) capacity. This expansion was made possible in part by a $28.4 million grant from the US Department of Policy Context Energy with the expressed purpose to “expand and The Silver Peak Mine is a part of a growing upgrade the production of lithium materials for lithium industry that produced 175,000 metric tons advanced transportation batteries.” Albemarle of lithium carbonate in 2015 globally. According to believes that the Silver Creek expansion is an Cormark Securities, global lithium consumption is ‘investment’ into Esmeralda County. (Albemarle, projected to increase 100% by 2020. This increase in 2016) demand and consumption is mainly due to use of lithium-ion batteries for electric and hybrid vehicles. Citi Research reports that the global market for lithium-ion batteries in 2015 was $24 billion, and is predicted to be $40 billion by 2020 (Fehrenbacher, 2016). The expansion of the Silver Peak Mine is connected to the construction of the “Gigafactory,” a $5 billion lithium-ion battery factory co-owned by the electric vehicle-manufacturer, Tesla, and Clayton Valley, location of the Silver Peak Mine1 Japanese technology giant, Panasonic. The gigafactory is currently being built only three and a The word “mine” is a bit misleading when half hours away from the Silver Peak Mine near the referring to Silver Peak. This operation is not town Sparks. The goal of the Gigafactory is to extracting rock or ore from the ground to be vertically integrate the battery-making process in processed. Rather the “mine” withdraws subsurface order to cut down on costs. This means that the Gigafactory will take raw materials, such as lithium, already in operation, the approval process for the nickel and cobalt, and turn them into batteries, all expansion was relatively easy and simple. The under one roof. Once completed and operating at full largest consideration seemed to be potential harm to capacity the gigafactory will be able to turn 15,000- migratory waterfowl, which can be harmed or killed 25,000 tons of lithium carbonate into lithium ion- by the high-concentration brine in the evaporation batteries every year. That is 17% of current global ponds. The expansion would require more lithium output. Batteries produced in the factory will evaporation ponds meaning that there is an increased be installed in Tesla’s electric vehicles as well as in risk of birds landing in the ponds (DOE, 2010). a product that Tesla calls the “PowerPack” which is There appears to have been little to no public used to charge Tesla vehicles. Silver Peak Mine’s opposition to the proposed expansion of the Silver proximity to the Gigafactory makes it an attractive Peak mine. This could be due to two different reasons. potential supplier to Tesla and Panasonic (Nanalyze, First, the opportunities for public response to the 2015). expansion might not have been easily accessible to The Silver Peak Mine expansion has the the public, resulting in low participation. Second, support of state-level policymakers. Brian and perhaps more likely, is that the residents of the Sandoval, the current Governor of Nevada has said Silver Peak area are in support of the mine and felt that “[t]he key to growing our mining industry is the no reason to participate in any opportunities for continued opposition to restrictive federal rules public response. Silver Peak’s entire existence has related to public lands.” The Governor would like been centered around mining in the region. It is no President Trump to ease regulations for mining coincidence that the mine and town share the same companies so that they might more easily develop name. In 2017, the mine’s Plant Manager, John more mines. Additionally, early in 2017, State Mayes, stated that the operation is “pretty important” Senator Pat Spearman and State Assemblyman Jim to Silver Peak because of all the jobs that it provides Wheeler began drafting legislation that would promote the development of lithium mining in to the small town (Nelson, 2017). It is likely that the Nevada by removing sales taxes on equipment expansion of the Silver Peak was a welcome needed for lithium exploration and development development for the small town. within the state (Walker, 2017). Conclusion The rise of electric vehicles and the construction of Tesla and Panasonic’s Gigafactory has given the Silver Peak Mine new life. The mine has the general favorability of global markets as well as local and state politics. Lithium mining at the Silver Peak Mine is contributing to a transition to a world with more sustainable energy, however the mine is still inherently degrading the surrounding environment. Evaporation Ponds at the Silver Peak Mine2 Rather than being an open-pit mine or one that is associated with radioactive thorium production like Evaporation Ponds at the Silver Peak Mine2 other REE mines, the Silver Peak Mine requires Public Response and EA Process tremendous amounts of land for evaporation ponds, The Environmental Assessment process which also are toxic to plants and wildlife in the area. concluded in 2010 with a Finding of No Significant Although the environmental impacts may differ, the Impact statement released by the Department of Silver Peak Mine should adhere to the same Energy (DOE, Sept 2010). Since the mine was environmental rigor applied to every other REE mine. Works Cited Fehrenbacher, Katie. “A Lithium Gamble That Could Win Big for Tesla.” Fortune, 29 Mar. 2016, fortune.com/2016/03/29/lithium-tesla-mine-nevada/. Frankel, Todd, and Peter Whoriskey. “Companies are making billions in lithium mining. But these indigenous people are being left out.” The Washington Post, WP Company, 19 Dec. 2016, www.washingtonpost.com/graphics/business/batteries/tossed-aside-in-the-lithium-rush/. Geuss, Megan. “Tesla signs another deal with a company developing a lithium mine.” Ars Technica, 17 Sept. 2015, arstechnica.com/information-technology/2015/09/tesla-signs-another-deal-with-a-company- developing-a-lithium-mine/. Nelson, Paul. “Nevada's Silver Peak Lithium Mine Prepares To Ramp Up Production.” KTVN Channel 2, CBS News, 1 Feb. 2017, www.ktvn.com/story/34405088/nevadas-silver-peak-lithium-mine-prepares-to-ramp-up- production. Pullen, John Patrick. “New Drone Footage From Over Tesla's Massive Gigafactory.” Fortune, 7 Aug. 2017, fortune.com/2017/08/07/tesla-gigafactory-drone-footage-video-construction/. “The Likely Provider of Lithium for Tesla's Gigafactory.” Nanalyze, 19 Aug. 2015, www.nanalyze.com/2015/08/the-likely-provider-of-lithium-for-teslas-gigafactory/. “Silver Peak, Nevada Lithium Operations.” Albemarle Corporation, 20 May 2016. https://www.leg.state.nv.us/App/InterimCommittee/REL/Document/6827 Walker, Patrick. “North America's only working lithium mine is in Nevada.” Las Vegas Now, CBS News, 23 Feb. 2017, www.lasvegasnow.com/news/north-americas-only-working-lithium-mine-is-in- nevada/662089846. Westervelt, Amy. “Tesla's new batteries may be harder on the environment than you think.” The Guardian, Guardian News and Media, 10 June 2015, www.theguardian.com/vital-signs/2015/jun/10/tesla-batteries- environment-lithium-elon-musk-powerwall. United States, Congress, Department of Energy, “Final Environmental Assessment For Chemetall Foote Corporation: Electric Drive Vehicle Battery and Component Manufacturing Initiative Kings Mountain, NC and Silver Peak, NV.” Chemetall Foote Corporation, 2010. United States, Congress, Department of Energy, “Finding of No Significant Impact for Electric Drive Vehicle Battery and Component Manufacturing Initiative Project.” Chemetall Foote Corporation, 2010. https://energy.gov/sites/prod/files/nepapub/nepa_documents/RedDont/EA-1715-FONSI-2010.pdf Photo Sources 1http://www.lithium-x.com/clayton_valley/ 2https://en.wikipedia.org/wiki/Silver_Peak,_Nevada .