The Bureau of Land Management (BLM) has greenlit a significant mineral exploration project in Railroad Valley, Nye County, Nevada, opening the door to potential discoveries of critical minerals essential for the clean energy transition and national security. Approved on June 4, 2025, the project allows 3PL Operating Inc. to explore approximately 40 acres of public lands within a 24,727-acre area for valuable deposits of lithium, boron, tungsten, sodium, potassium, and phosphate. This development signals new opportunities for mining companies and investors eyeing the growing demand for critical minerals. Here’s what you need to know about the project, the minerals involved, potential players, and what investors should consider.
Critical Minerals in Focus
The Railroad Valley exploration targets a suite of minerals classified as critical by the U.S. Geological Survey (USGS) due to their importance to the economy, national security, and supply chain vulnerabilities. Here’s a breakdown of the key minerals:
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Lithium: A cornerstone of lithium-ion batteries, lithium is critical for electric vehicles (EVs), grid storage, and portable electronics. With global EV sales projected to reach 31.1 million units annually by 2030, lithium demand is soaring.
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Boron: Used in glass, ceramics, and advanced materials, boron compounds are also vital for energy-efficient technologies and nuclear applications.
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Tungsten: Known for its hardness and high melting point, tungsten is essential for aerospace, defense, and industrial tools. The U.S. relies heavily on imports, making domestic sources strategic.
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Sodium, Potassium, and Phosphate: These leasable minerals are critical for fertilizers, chemical manufacturing, and energy storage technologies. Phosphate, in particular, is gaining attention for lithium-iron-phosphate (LFP) batteries.
The exploration will focus on subsurface brine and geologic strata, leveraging advanced drilling techniques to assess the viability of these deposits.
Potential Mining Companies Involved
The approved project is led by 3PL Operating Inc., a company with mining claims in the Railroad Valley area. While 3PL is the primary operator, the project’s scale and the critical minerals involved could attract attention from larger players or joint ventures. Here are some companies to watch:
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3PL Operating Inc.: As the project lead, 3PL is positioned to benefit directly from successful exploration. Investors should monitor its financials, exploration progress, and potential partnerships.
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Albemarle Corporation: A global leader in lithium production, Albemarle operates the nearby Silver Peak lithium brine mine in Nevada. Its expertise in lithium extraction could make it a potential partner or acquirer if Railroad Valley proves viable.
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Ioneer Ltd.: Active in Nevada with the Rhyolite Ridge lithium-boron project, Ioneer has experience navigating BLM permitting and could eye Railroad Valley for portfolio expansion.
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Nevada Lithium Resources Inc.: Focused on lithium exploration in Nevada, this company could be interested in Railroad Valley’s lithium potential, especially given its proximity to existing operations.
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Schlumberger New Energy: Already involved in Nevada’s Clayton Valley lithium project, Schlumberger’s innovative extraction technologies could be applied to Railroad Valley’s brine deposits.
While 3PL is currently the sole operator, successful exploration could draw interest from these and other firms, especially as the U.S. pushes for domestic critical mineral supply chains under initiatives like the Defense Production Act.
What Investors Should Look For
Investing in critical mineral mining and processing is high-risk but potentially high-reward, given the global push for energy transition and supply chain security. Here are key factors investors should consider when evaluating opportunities like Railroad Valley:
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Resource Viability and Grade: Exploration results will determine whether Railroad Valley’s deposits are economically viable. Investors should seek companies that provide transparent resource estimates and third-party validations.
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Permitting and Regulatory Risks: The BLM’s approval is a positive step, but future mining operations will require additional environmental reviews and public comment periods. Delays or opposition (e.g., from stakeholders like NASA, which previously raised concerns in Railroad Valley) could impact timelines.
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Technological Innovation: Companies using advanced extraction methods, such as direct lithium extraction (DLE), may reduce costs and environmental impacts, improving project economics. Schlumberger’s DLE pilot in Clayton Valley is a case study to watch.
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Market Dynamics: Lithium prices have been volatile, with oversupply concerns in 2024 giving way to tightening markets in 2025 as EV demand rebounds. Boron and tungsten markets are niche but stable, driven by industrial and defense applications.
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Geopolitical Support: U.S. policies, including the Inflation Reduction Act and Biden’s critical minerals strategy, provide funding and incentives for domestic projects. Investors should prioritize companies with access to federal grants or loan guarantees.
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Company Financials and Partnerships: Small explorers like 3PL may need to partner with larger firms to fund development. Investors should assess balance sheets, cash flow, and strategic alliances.
Market Context: Critical Minerals Demand
To illustrate the investment potential, consider the projected demand for lithium, a flagship critical mineral in Railroad Valley. The chart below shows estimated global lithium demand from 2025 to 2030, driven by EV and battery storage growth.
Chart: Global Lithium Demand (2025–2030)
Source: International Energy Agency (IEA) and industry estimates
Source: International Energy Agency (IEA) and industry estimates
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Year
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Lithium Demand (kt LCE)
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Growth Rate (%)
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|---|---|---|
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2025
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1,200
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–
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2026
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1,500
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25.0
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2027
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1,800
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20.0
|
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2028
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2,100
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16.7
|
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2029
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2,400
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14.3
|
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2030
|
2,700
|
12.5
|
This chart underscores the robust growth in lithium demand, which could drive investment interest in Railroad Valley if exploration confirms significant deposits.
Challenges and Opportunities
While the BLM’s approval is a milestone, challenges remain. Environmental concerns, such as potential impacts on local ecosystems, could lead to opposition, as seen in previous Nevada projects like Rhyolite Ridge. Additionally, the BLM’s limited authority under the Mining Law of 1872 can complicate regulatory oversight, potentially shifting disputes to courts.
On the opportunity side, Railroad Valley’s proximity to existing lithium operations (e.g., Silver Peak) and Nevada’s status as a mining hub enhance its appeal. The state leads the nation with over 180,000 active mining claims and a robust reclamation framework, making it a stable jurisdiction for investors.
Conclusion
The BLM’s approval of mineral exploration in Railroad Valley marks a promising step toward unlocking domestic sources of lithium, boron, tungsten, and other critical minerals. For investors, the project offers exposure to the growing critical minerals market, but success hinges on exploration outcomes, regulatory navigation, and market conditions. Companies like 3PL Operating Inc., and potentially larger players like Albemarle or Ioneer, are ones to watch as the project progresses.
Investors should conduct thorough due diligence, focusing on resource potential, technological edge, and policy support. As the U.S. races to secure its critical mineral supply chain, Railroad Valley could emerge as a key piece of the puzzle.
Stay tuned to Energy News Beat for updates on this developing story. We will be writing updates the information and have comments on The Energy News Beat Substack
Sources:
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Bureau of Land Management:
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International Energy Agency and industry reports for lithium demand projections.
Disclaimer: This article is for informational purposes only and not investment advice. Always consult a financial advisor before making investment decisions.