Texas Emerges as Hotspot in Global Race for Rare Earth Elements: The New Gold Rush

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In Dallas, a new chapter is unfolding as lithium’s importance surges, fueling everything from electric vehicles to advanced military technology like cruise missiles. This growing need has sparked a fervent quest for rare earth elements nestled deep beneath the mineral-abundant lands of East Texas.

With this in mind, major energy firms are diversifying their focus in Texas. No longer solely fixated on oil extraction, these industry giants are now channeling billions into the pursuit of lithium and other invaluable minerals. This modern-day treasure hunt is being likened to a gold rush, albeit one with an eye towards the future of energy.

Heavyweights such as Chevron, Halliburton, and Exxon are leading this charge, eager to establish lithium mines in East Texas. These companies have a long history of drilling in the region, but their latest endeavors mark a significant pivot towards securing the resources crucial for the next generation of technology.

Meanwhile, Michigan has taken a surprising turn by withdrawing incentives for a substantial $2.4 billion electric vehicle battery plant, highlighting the shifting dynamics and priorities within the energy sector.

Smackover Formation could fuel nation’s lithium needs

The United States currently faces a shortfall in producing sufficient lithium and other critical minerals necessary for its clean energy ambitions. However, a game-changing discovery last month offers a glimmer of hope. A remarkable brine deposit, known as the “Smackover Formation,” has revealed the most lithium-rich fluids ever found in North America. Originally identified around two decades ago, this formation spans from East Texas through Arkansas and extends all the way to the Florida Panhandle, potentially redefining America’s energy landscape.

Experts have said the region is quickly becoming one of the central hubs for U.S. lithium production and that, in 10 years, it could be the nation’s largest domestic source.

According to the U.S. Geological Survey, the Arkansas portion alone could contain enough lithium to meet global demand for car batteries nine times over.

China is the world’s third-largest lithium producer

Currently, China is the third-largest producer and processor of lithium, posing serious economic and national security risks, according to the World Economic Forum. But the Smackover Formation discovery could help change that.

“It’s all imported from China right now, and they do have the ability if they stop export, which was recently announced, that we’re going to really restrict the export of it,” said Douglas Wicks, a former program director at the Department of Energy. “It could grind our economy to a halt in a matter of months.”

Wicks added that, with the Energy Department’s support, the U.S. could begin to significantly reduce lithium imports from China by 2027.