America’s $232 billion lithium industry could drain billions of gallons of water from Colorado River and residential wells because  Civil War-era law doesn’t limit how much mines can use

America’s lithium boom is underway with 72 proposed mines in the country, but a new report has revealed that the ‘white gold rush’ could trigger a water crisis in the US.

A team of students from Arizona State University conducted a “groundbreaking” study that found a majority of operators plan to draw water from already stressed sources such as the Colorado River.

Most of the mines, located in the western region, will require billions of liters of water to function at a time when the region is experiencing its worst mega-drought in 1,200 years.

Nevada’s only operating mine, Silver Peak, has discharged four billion gallons of water per year since 2020, and scientists have found that “underground water sources are dwindling and even disappearing altogether.”

On the East Coast in North Carolina is another proposed lithium mine that the students discovered could cause residential wells to go dry.

However, companies have free will when it comes to water use, as the federal law governing mining was created a few years after the Civil War and has no limits on levels.

America has about eight million tons of lithium in its country, meaning the U.S. industry is worth about $232 billion.

However, the country only accounts for about one percent of global lithium production.

The students, who study investigative journalism at the Howard Center, sifted through tens of thousands of pages of state and federal environmental impact statements and mining reports filed by companies through the end of December 2023.

One of the study’s key findings was the lack of federal laws governing mining, particularly on how much can be extracted from the U.S. supply.

The Mining Act of 1872 is the only applicable rule, which declared all valuable mineral reserves in lands of the United States free and open to exploration and purchase.

The provisions were amended only to add the Federal Land Policy Management Act of 1976, which provides guidelines “to provide for the management, protection, development and improvement of the public lands.”

That addiction came into effect in January 1981 and no changes have been made to the Mining Act since then.

Patrick Donnelly, a conservation biologist for the nonprofit Center for Biological Diversity, told the Howard Center that if all 72 proposed mines were built under current rules, “this would be a fundamental transformation of the American West.”

“People compare it to the Gold Rush, but the Gold Rush was quite small-scale compared to what all this lithium looks like,” Donnelly continued.

The students researched proposed mines in Arkansas and found that companies also want to use mineral-rich water from drier regions of the southern state.

The location is set for a small town called Magnolia, where only 11,100 people live.

Exxon Mobil plans to build one of the world’s largest lithium processing facilities near the city, with the capacity to produce 75,000 to 100,000 tons of lithium per year, which would be 15 percent of the world’s lithium production.

About 40 of the 72 mines are zoned for Nevada, America’s driest state, and 80 percent of them would rely on water supplies that are at risk of low water levels, according to the Howard Center analysis.

Although the mines are not yet operational, Silver Peak has been producing lithium since the 1960s.

The mine is owned by US-based Albemarle and produces around 5,000 tonnes of lithium per year, which is enough to make batteries for 80,000 electric vehicles.

Albemarle plans to revive the Kings Mountain mine in North Carolina, which could hold five million tons when it comes online in 2030.

However, residents of the town are concerned about their personal water supply, which comes from underground sources.

The Central Nevada Regional Water Authority has discovered problems with mining practices at Silver Peak.

The local government agency reported that uncovered water levels near the mine site decreased between 2022 and 2023 “solely as a result of the dewatering of the entire Clayton Valley for lithium mining purposes.”

Scott Thibodeaux, Silver Peak’s site manager, told the students, “I’m not familiar with the specifics. Maybe someone within the organization is. I’m not myself.’

The Howard Center report noted that Thibodeaux oversees operations, including water use.

DailyMail.com has contacted Thibodeaux for comment.

Albemarle spokesperson Allison Eckley issued a statement after speaking to the students about Silver Peak’s impact on the water supply, saying, “Albemarle’s operations do not impact the area’s freshwater aquifers.”

Nyle Pennington, a veteran water scientist who traces groundwater for local governments, told the Howard Center team that he has data to support that Albermarle is doing that, and that it is the quantity rather than the quality of the water that is being disrupted.

Jeff Fontaine, executive director of the Central Nevada Regional Water Authority, also noted that excessive water use in the basin can cause “permanent” damage underground and “a combination of things that could prevent the aquifer from ever truly repairing itself.”

The Howard Center team analyzed state water data and found projections showing that water from the mine could increase discharge by as much as 6.5 billion gallons, which Eckley told the students was part of the company’s plan.

Albermarle disclosed to the U.S. Securities and Exchange Commission that that amount would equal or exceed the amount the basin naturally produces each year.

“I think the alarm bells have been ringing,” Fontaine said. “I think a lot of people are concerned about what’s happening in Clayton Valley, but I don’t know if there’s a consensus on what should be done.”

In addition to a potential water crisis, the team found that only 17 of the mines are owned by US-based companies – meaning the rest have been purchased by foreign entities.

About 28 of Nevada’s 40 locations are owned by companies outside the U.S., the Howard Center analysis found.

Esmeralda County Commissioner De Winsor, a Republican, said, “These mining companies come in and they don’t belong to the area.

“They’re from Australia, or they’re from Canada, or they’re from another country and they don’t care about the communities or the water sources.

Canada-based Lithium Americas is seeking a record $1 billion low-interest loan from the Department of Energy to finance construction for lithium extraction from U.S. public lands in Nevada.

The company is working with General Motors to buy lithium for electric car batteries, but the students noted that “nothing would stop General Motors from taking the American-made batteries and shipping them south of the border, where they could create or retain jobs at General Motors. Motors’ electric vehicle production facility in Mexico.’

GM said in an email to the Howard Center that the company plans to use the lithium it obtains from Lithium Americas outside the U.S. as part of a “broader strategy we need to build for a North America-based supply chain for raw materials and processed materials for EV batteries and other EV components such as permanent magnets and motors.’