A trade agreement between Nevada, which is rapidly making a name for itself as a lithium mining hub, and the Canadian state of Ontario stands to benefit both the United States and Canada in terms of domestic lithium production and securing a viable and sustainable supply of the precious metal for the North American electric vehicle industry.
The memorandum of understanding was signed between Nevada governor Joe Lombardo and Ontario premier Doug Ford earlier this week. Among the goals of this agreement are facilitating trade in terms of the lithium and rare earths between the two states; the infusion of investments for the joint lithium sector; as well as the development of green power solutions.
The Heart of New-generation Development
For his part, Lombardo stated that lithium is the very core of the agreement. Indeed, both sides stand to gain a major economic windfall via joint mining.
Nevada remains the only state within North America, either in the United States or Canada, that has an operational lithium mine. Currently, the state’s Thacker Pass also holds one of the largest lithium deposits in the world, and mining operations at the site are slated to begin in the coming months.
Lombardo also expressed hope that operations will begin come January of next year, which could be a challenge as it takes an average of seven years before operations start on any mine in the region.
A Steady Supply
Experts have pointed out that Thacker Pass is estimated to have at least 13.7 million tons of raw lithium ore. Once production is in full-swing, it stands to produce enough processed lithium for manufacturing up to a million EV batteries per annum.
This will eventually give Ontario’s automotive industry a massive leg up through a steady supply of lithium – a true advantage, given how EVs are rapidly becoming the standard on roads the world over.