Home NewsStock Market News California plans to impose tax on lithium mining industry: it may lead to delays in delivery | Anue Juheng – US Stock Radar

California plans to impose tax on lithium mining industry: it may lead to delays in delivery | Anue Juheng – US Stock Radar

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California plans to impose tax on lithium mining industry: it may lead to delays in delivery | Anue Juheng – US Stock Radar


U.S. lithium miners have warned that a single tax on lithium in California’s Salton Sea region could affect deliveries to electric vehicle makers such as GM-US and Stellantis and force miners to relocate away from California.

The Salton Sea is a saltwater lake in California, the United States. The area is rich in lithium ore resources, but it has been disturbed by environmental pollution for a long time. California government officials suggest that taxation should be used to strike a balance between the economy and environmental protection. The local legislature is debating the tax proposal.

News of the tax has sparked concerns among some lithium miners, with EnergySource Minerals CEO Eric Spomer arguing the decision would kill the industry before it officially hits the road.

Controlled Thermal Resources (CTR) CEO Rod Colwell also warned that the new tax will affect lithium supply agreements with automakers. The company expects to deliver lithium mines to General Motors and Stellantis in 2024 and 2025. cause the company to miss delivery deadlines.

“The concept of taxation alone will have a chilling effect on the development of the entire industry,” Colwell told Reuters. CTR originally planned to produce 60,000 tons of lithium mines in California by mid-2024, enough to power 6 million lithium-ion batteries for electric vehicles use, and now this project may be in trouble.

California Governor Gavin Newsom has expressed support for the tax proposal. The proposal would impose a tax of $400 per ton on the first 20,000 tons of lithium ore produced annually, $600 per ton on the next 10,000 tons, and a tax of $600 per ton on lithium output of 30,000 tons or more. A tax of $800 per ton is levied.

Lithium executives say they are not against the tax, but prefer 2 percent or less on sales. They argue that a single tax rate could be devastating once metal prices fall.

“We are willing to give and contribute to the local community, but only at a reasonable rate,” said Eric Spomer, CEO of EnergySource Minerals.

In addition, given the high concentration of impurities in the Salton Sea geothermal layer, where the cost of extracting lithium is already high, the latest tax may force miners to relocate to other areas rich in lithium brine aquifers, such as Utah state and Arkansas.

“If the legislation passes, we will choose to fight or leave,” said the CTR chief executive.

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