[Bojo, Battery] POSCO Holdings to Extract Lithium from US McDermitt, the World's Largest Lithium Deposit

Editor's Note'Bojo, Battery' is a series that takes a closer look at the battery industry, which has emerged as the center of next-generation advanced industries. It examines the agile movements, strategies, and conflicts among governments and companies worldwide vying to dominate the battery manufacturing ecosystem. We will also cover the technological competition to create safer and longer-lasting batteries. We aim to serve as an 'assistant' to readers and investors by enhancing and supporting their understanding of the battery industry. We will share battery stories that are easy to approach.

POSCO Holdings recently confirmed that it has secured a lithium supply chain near the McDermitt Caldera in the United States, which was found to have the largest lithium deposits worldwide.

On the 15th, POSCO Holdings announced that it is conducting a clay lithium project in the northwestern area of the McDermitt Caldera, located on the border between Oregon and Nevada, covering approximately 54.6㎢, in partnership with Jindalee Resources (Jindalee), an Australian mineral exploration and development specialist company. Jindalee holds 100% equity in this clay project.

In February this year, POSCO Holdings signed an MOU (Memorandum of Understanding) for joint research and business cooperation to commercialize the 'McDermitt Clay Lithium Project' in the United States with Jindalee. Currently, tests are underway based on clay lithium samples received from Jindalee. POSCO Holdings plans to develop optimal process technology to extract lithium from the clay in this area.

MacDermitt Caldera located between Oregon and Nevada in the United States

What draws attention is the 'jackpot' potential of the project POSCO Holdings has entered. The McDermitt Caldera area is estimated to have a lithium clay layer of up to 40 million tons. Recently, an exploration team composed of geologists from Canadian mining company Lithium Americas, GNS Science, and researchers from Oregon State University discovered a lithium clay layer with reserves ranging from 20 million to 40 million tons in this area.

This surpasses the approximately 23 million tons of lithium reserves in Bolivia's salt flats, previously considered the largest. The global lithium reserve rankings were previously Argentina (20 million tons) in second place, Chile (11 million tons) third, the United States (12 million tons) fourth, and Australia (7.9 million tons) fifth. The amount found in the McDermitt Caldera alone would significantly overturn these rankings (according to the U.S. Geological Survey). Anouk Bost, a geology professor at KU Leuven in Belgium, said, "The global dynamics of lithium could change in terms of price, supply stability, and geopolitics."

Jindalee is verifying the reserves by drilling 62 boreholes, and based on the first drilling results conducted last year, it internally estimates lithium reserves of 21.5 million tons. As investigations continue, lithium reserves may increase, and the project scale could expand further.

In terms of value, it is estimated to be approximately KRW 1,279.395 trillion. This figure is derived considering the average stable price of lithium carbonate this year (175.5 yuan per ton) and the maximum reserves. The McDermitt Caldera also hosts North America's largest lithium projects, including the 'Thacker Pass Mine' (southern McDermitt Caldera), developed with participation from General Motors (GM), and the Aurora Lithium Project (northeastern area). The research team analyzed that including lithium possibly buried in the collapsed volcanic caldera, reserves could reach up to 120 million tons.

Jindalli Resources is conducting drilling operations at the McDermitt Lithium Project in Oregon, USA. Photo by Jindalli Resources website

The lithium concentration in the area where POSCO Holdings and Jindalee Resources are preparing for commercial mining is known to be 1,340 ppm. The concentration of lithium in salt lakes (saline lakes) with high lithium content is around 1,000 ppm. A concentration of about 300-400 ppm is considered commercially viable. The higher the lithium concentration, the lower the energy and equipment costs required for extraction. At the Thacker Pass Mine, high-concentration clay exceeding 8,000 ppm has been found.

High-concentration lithium clay was formed by the McDermitt volcanic eruption 16 million years ago. Magma rich in lithium, sodium, and potassium rapidly cooled, and over hundreds of thousands of years, lakes formed, depositing clay-rich sediments that created the current 'McDermitt Caldera.'

However, clay lithium has not yet been commercially produced. Lithium, a core battery material, has mainly been extracted from ores and brines. Non-traditional lithium resource deposits such as clay and oilfield brines have had low grades (content of useful elements) and extraction technologies were challenging. But with the advent of the electric vehicle era, the value of lithium as a key battery raw material has risen, and extraction technologies have advanced, accelerating commercialization.