Elon Powered Lithium War: Green Capitalism or Resource Colonialism?

Elon Powered Lithium War: Green Capitalism or Resource Colonialism?

Elon Musk’s lithium projects and AI data centers are accelerating a new U.S. resource rush—draining water, polluting cities, and exposing the dark side of the green energy transition.

Let’s be real: the so-called “green transition” is starting to look a lot like colonialism with lithium batteries. Elon Musk is revving up an extractive future, dragging the rest of us into what he call "economic progress"—but what mostly looks like a privatized, deregulated planetary strip mine.

Right now, we’re in the middle of a geopolitical tug-of-war over rare earths, magnets, lithium, and every strategic mineral that can make a robot bark or power a military drone. And the U.S. isn’t winning. China just slammed the brakes on exports of seven rare earth categories—samarium, gadolinium, terbium, dysprosium, lutetium, scandium, and yttrium. These are foundational to everything from EV motors to missile guidance systems.

Meanwhile, Elon’s cooking up lithium refineries in drought-ridden Texas and dumping turbine smog into poor neighborhoods in Memphis to power his new xAI datacenters. The guy wants to save the planet by turning it into his private hellbox.

This is fine, except Americans do not want to do these jobs in general. Setting up this will also take 7-12 years as well.

America’s Got No Rare Earths and No Simple Plan to Solve This

According to the NDTV report, China controls about 90% of the global rare earths supply. The U.S.? We’ve got one mine. That’s it. One mine, and barely any refining infrastructure. So when Beijing cuts off exports, it’s not just EVs that take the hit. It’s aerospace, semiconductors, medical tech, even your precious AI chips.

Global Rare Earth Control Breakdown

The U.S. dependency is so baked in that even Lockheed Martin and Tesla rely on Chinese rare earths. Now imagine your entire military-industrial complex suddenly trying to source samarium from somewhere else.

Elon's Green Lie: "Clean Energy" for Who?

Tesla’s $1 Billion Texas Lithium Refinery

Elon Musk’s empire is fueled by lithium. He says lithium is "everywhere," and the problem is just refining it in the U.S. So he built a refinery in Corpus Christi—an area so dry the local water company hands out shower timers at football games.

Tesla originally claimed the plant would use 400,000 gallons of water per day. Two years later, the estimate jumped to 8 million gallons daily, per South Texas Water Authority documents. That's 8x Robstown’s residential water usage. And that’s just for one plant.

Tesla’s Water Usage Estimates – Corpus Christi Refinery

This is what green capitalism looks like: build a lithium plant in a drought zone, burn natural gas turbines in a polluted Black neighborhood, and call it "progress."

xAI’s Dirty Backend

Musk’s AI company, xAI, recently installed 35 gas turbines in Memphis—despite applying for permits for only 15. The turbines emit up to 2,000 tons of nitrogen oxides (NOx) per year, making the xAI data center possibly the largest industrial NOx polluter in Memphis, according to the Southern Environmental Law Center.

Memphis residents already deal with aging infrastructure, poor air quality, and chronic respiratory issues. But now they get to fuel Musk’s $80 billion AI startup with their lungs.

The Green Transition: Can Mining Be Clean?

Yes, lithium mining has a reputation for being dirty—huge water use, carbon emissions, and potential for environmental damage. But not every mining company is burning down ecosystems to get at the good stuff. A new wave of operators is trying to prove that you can mine clean—or at least cleaner.

Innovative companies in Chile, Australia, and Canada are implementing low-carbon extraction technologies like direct lithium extraction (DLE), which dramatically reduces water usage compared to traditional evaporation methods. They're also investing in renewable energy-powered operations and rigorous environmental monitoring programs to keep local ecosystems intact.

Ioneer's Rhyolite Ridge Lithium-Boron Project in Nevada utilizes solar energy and closed-loop water systems to limit waste and reduce environmental impact.

In places like Nevada, firms like Ioneer and Lithium Americas are integrating solar fields and closed-loop water systems to limit waste. Even some South American operations are using brine reinjection techniques to return extracted fluids back into the ground, reducing long-term ecological disruption.

Ethical Lithium Mining Innovations

Look, no one’s saying mining will ever be a spa day for the planet. But it doesn’t have to be a corporate Mad Max free-for-all either. With the right policy pressure and community watchdogs, we can move from “necessary evil” to “managed impact.”

Who’s Being Sacrificed?

The trade war is escalating. If you’re poor? You’re the collateral. You’re living next to the refineries. You’re getting the air quality alerts. You’re watching your water bills skyrocket because a billionaire needs another AI server rack.

If you're working class? Musk says you should be transferred from your "unproductive" government job to a mine. His words. That’s not metaphor. That’s literal economic policy now.

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This Ain’t About Innovation—It’s Resource Colonialism

What we’re witnessing isn’t a green transition. It’s resource colonialism 2.0. Extract, refine, pollute, and profit—then spin it as saving the Earth.

And while trade war hawks scream about China and national security, the truth is that American billionaires are just as complicit. The rare earths race is a smoke screen for privatized land grabs, deregulated labor, and extraction with zero accountability.

You don’t fix climate change by building lithium gigafactories in deserts or dropping NOx bombs on Memphis. You fix it by reducing consumption, reinvesting in public infrastructure, and treating people—not just shareholders—as worth saving.

But that’s not where we’re headed. The mines are open, the water is drying, and if Elon gets his way, your future job is probably already buried underground.

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