Silver Peak Mine in Esmerelda County is the only lithium mine in North America, producing 3,400 metric tons of lithium carbonate each year. It has the capability to produce 6,000 metric tons, so the mine will ramp up production as demand increases. The mineral is used in greases, ceramics and batteries.
"The growth of lithium looks great," David Klanecky, Vice President of Albemarle Corporation's Lithium Division said. "Batteries are going to be the major driver for us."
Lithium-ion batteries have been on the market since 1992, and demand has grown since cell phones became mainstream around 2003, and the birth of the iPhone in 2007. While wireless devices will continue grow the lithium industry, the biggest increase could be because of transportation.
"We're very excited for what we see in terms of growth," Klanecky said. "Especially, in the energy storage space. You see a lot of growth there with transportation, things like vehicles, buses, taxis."
Lithium-ion batteries are used for electric cars, and growth in that area is projected to be 20-30 percent in the next few years. That is because of the emergence of companies like Tesla and Faraday Future, along with established companies in the auto industry that are venturing in electric cars. The Gigafactory at the Tahoe-Reno Industrial Center is projected to account for 10 percent of the lithium market by 2020, manufacturing batteries and battery packs for Tesla's cars.
"Those are some fantastic products that they have on the market and that really helps raise the excitement about the technology that's out there to electrify the transportation fleet and we're excited for them to be successful," Klanecky said.
Another area that could see huge growth is wind and solar power. That sector could see more than 30 percent growth in lithium use. Large batteries could be used to store the energy, and added back into the grid when it is needed.
"It's exciting to watch that change in electric vehicles in transportation but it's also exciting to be a part of really one of the significant growing parts of the chemical industry and one that is so tied to clean energy and renewables," Karen Narwold, Chief Administrative Officer and General Counsel of Albemarle Corporation said.
Apple sold more than 45 million iPhones in the final quarter of 2016. Over an entire year, the amount of lithium used in iPhones is less than one percent of the market. Still, other cell phone and mobile devices have increased the demand of lithium. Growth is projected to grow 8-10 percent in that category.
"Consumer electronics is continuing to grow," Klanecky said. "People are looking at ways to have smaller devices, and lithium, with its light properties is being put into those devices. Things like power tools, as well."
Along with lithium, Nevada's mines produce 19 other minerals and metals. The emergence of new technology companies is diversifying the economy, which is also good for the mining industry.
"With Nevada's emerging growth in all of those sectors, I think it's a good sign for the mining industry," Dana Bennett, President of the Nevada Mining Association said. "We are a part of the new Nevada."
