Today, lithium stocks are in focus as investors digest some big news in the world of lithium mining. A major lithium deposit was discovered and reported on today, which could be the largest lithium deposit in the world. The deposit is located inside a dormant volcano on the border of Nevada and Oregon. Interestingly, shares of Lithium Americas (NYSE:LAC) stock are surging on the news, up nearly 10% on this announcement.

Lithium Americas owns the rights to the Thacker Pass mine in Nevada. Thacker Pass is one of the largest mines to have received approval in the U.S. Additionally, the company has secured refining deals in a bid to turn the mine’s ore into refined lithium. This is something that pundits claim is the missing piece of the puzzle for the American lithium mining sector (most ore is refined overseas). Thus, if Lithium Americas can secure either mining or refining rights tied to this new discovery, there’s a lot to like about its prospects moving forward.

Now, more lithium on the open market may mean lower aggregate prices for ore. Thus, today’s move may be a head-scratcher for many. Let’s dive into what to make of this news.

LAC Stock Surges on Major Lithium Find

It’s not every day investors wake up to the news that a lithium deposit, which could be capable of “meeting global battery demand for decades,” has been discovered. With potentially 120 million tonnes of lithium available to be mined in this deposit, it’s unclear just how much the dynamics of the lithium mining sector may be affected if this area is permitted to be mined.

The Biden administration has set some ambitious goals to push forward an electrification agenda. Such an agenda will require a tremendous amount of lithium to be mined. Accordingly, one has to think that permitting for lithium mining may be much more likely to be approved (compared to permits for oil & gas drilling, for example). That’s a great thing for those thinking long-term about this project.

Additionally, given Lithium Americas’ expertise in this region, it’s hard to imagine a better partner for the project. For now, this news brings about only speculative catalysts. That said, as the price action with LAC stock indicates, there’s a lot for investors to get excited about today.

On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.