Water scarcity in the western US threatens the burgeoning domestic lithium industry. The Trump administration backed Lithium Americas’ $3bn Thacker Pass mine in Nevada, and the push now shows about 115 proposed sites across the country.

Lithium extraction consumes large volumes of water, prompting community pushback and legal challenges. A Nevada rancher sued over water usage at Thacker Pass, a claim later settled. Blackstone Minerals’ Green River project in Utah has also faced litigation, with environmental group Great Basin Water Network suing over water rights.

Developers are turning to low‑water technologies and recycling. S&P Global notes 21 projects plan to use direct lithium extraction (DLE) to cut evaporation losses, while Lithium Americas aims to recycle 85 % of its water and reuse it seven times. Standard Lithium intends to use DLE at its Arkansas site.

Despite rising demand, analysts predict US output will account for only 5% of global lithium by 2030, with less than seven of the 100-plus announced projects reaching full operation. Climate‑driven water issues intensify regulatory hurdles and may keep the US dependent on imports for the foreseeable future.