Nye County approves nonbinding letter supporting Tonopah Lithium DOE grant after debate over water and commitments

Tonopah, Nev.

The Nye County Board of County Commissioners voted 5'0 to approve a nonbinding letter signifying the county's interest in a future community benefits agreement with Tonopah Lithium Corporation and to support the company's application for a U.S. Department of Energy grant. The decision followed a 40-minute presentation and more than an hour of questions and public comment at the March 5 joint meeting.

Tonopah Lithium vice president of engineering Graham Balachy told commissioners the company's TLC project is a large, near-surface claystone lithium resource about six miles northwest of Tonopah. Balachy said the project focuses initially on roughly 4,000 acres of the 12,600-acre claim, published a preliminary economic assessment showing robust returns and an estimated CapEx of about $819 million, and said the company is seeking the DOE's maximum award for a single project, $300 million, to help fund development. "It's entirely above the water table, which means ... we believe there is no real threat to the groundwaters of the state," Balachy said during his slide presentation.

Commissioners pressed the company to turn aspirational language into firmer commitments. Commissioner Jabbour and others objected to language in the requested letter and potential memorandum of understanding that used the word "could" when listing community benefits such as workforce training, scholarships and preferential hiring for Nye County residents and area tribal members. Commissioners insisted the letter be revised to reflect a stronger promise — changing "could" to "will" or similar wording — and the presenter agreed to modify the draft.

Public commenters raised environmental and resource concerns. Wayne Manning, a Smoky Valley resident, said local wells are shallow and asked whether the company had tested how deep the resource lies relative to household water supplies. "We want to make sure we do not come too close to that because messing up our water ... is the most important thing," Manning said. A caller, Amy Nelson, told the board she had previously presented documentation she said showed large water volumes used in lithium extraction and warned of pond and evaporative risks to groundwater and local ecosystems.

County staff and elected leaders also sought legal and procedural assurances. Megan Labadie, Nye County's director of natural resources, and the district attorney's office discussed the draft letter and potential legal review before any future binding agreement. Balachy described the requested letter as nonbinding and said it would document the company's intent to pursue a community partnership if the DOE award is granted.

After amending the draft to strengthen the commitment language and adding direction for county legal review, the board approved the motion. The county's action is nonbinding and does not authorize any permits or changes to environmental review processes, which the company said it will pursue through federal and state permitting (including a future Bureau of Land Management mine-plan application and Nevada Department of Environmental Protection permits).

What's next: Balachy said Tonopah Lithium must finalize its DOE application before the March 19 deadline and is seeking community partnership documentation to include in the submission. The county will provide the revised nonbinding letter and continue coordinating review with counsel and staff.