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Written by: Guest Commentary
Adela de la Torre
The president of San Diego State University is Adela de la Torre.
Welcome to the California Lithium Valley, where overregulation, lawsuits, and internal strife go as far as the estimated 18 million metric tons of lithium that are buried beneath the desert. In this case, a state experiencing financial difficulties may be unable to take advantage of an opportunity that could be worth over half a trillion dollars due to collective dysfunction.
What started out as a generational chance for the local economy and America’s green energy independence has devolved into a dead end of hollow promises, immobilizing self-interests and unrealized advancements.
The various stakeholders, including government officials, community organizations, commercial businesses, and environmental campaigners, are at a crossroads right now. They can argue over regulations and keep going down the different but fruitless routes, or they can unite and benefit from the abundant economic and environmental benefits this hidden gem has to offer.
We have long known that there is a rich subterranean lithium deposit close to the Salton Sea, and lithium is an essential part of renewable energy technologies. While Governor Gavin Newsom referred to the region as the Saudi Arabia of lithium and included it in the budget for that year, the U.S. Department of Energy stated in 2022 that the Lithium Valley was driving our clean energy transformation.
It wasn’t until late 2023 that scientists realized the deposit’s actual size and extent. There were 18 million metric tons of lithium accessible, according to soaring new estimates, which is enough to make over 375 million electric vehicle batteries and is projected to be worth $540 billion.
For a country that has recently had to import up to three-quarters of its lithium, it is a huge chance to increase renewable energy and improve energy independence. Additionally, there is a chance to boost the economy in Imperial County, where the unemployment rate is more than three times the state average at 17% and the poverty rate is 17%.
Unfortunately, EV batteries have not yet resulted in as many litigation or unfulfilled plans as Lithium Valley.
The state of California has already committed well over $100 million in the essential minerals industry, which is included in the state’s slate economic vision. However, as progress stalls, companies that made the commitment are reevaluating their intentions. The business is shifting its focus and resources to smaller lithium deposits in places like Nevada, Texas, Arizona, and Arkansas that are more conducive to advancement.
San Diego State University dedicated a brand-new, state-funded, $80 million STEM building this month to offer instruction that will enable Imperial County residents to benefit from the white gold in their own backyard. But these pupils will graduate into a local job market that is empty until Lithium Valley expansion picks up speed.
The promise of Lithium Valley is further out of reach with every new litigation, regulation, and hold-up. Customers will strengthen their supply chains in other countries over the years-long ramp-up process, which we are currently witnessing, making it much more difficult and costly for us to compete.By 2034, a 10% tax credit for businesses who harvest, refine, and recycle vital minerals like lithium will no longer exist, and costs will keep rising.
Lithium Valley may demonstrate that California is indeed a business-friendly state and that environmental responsibility and sustainability can coexist with economic success. It might serve as an example for effective, environmentally friendly, and locally driven development across the country.
We have access to clean energy, national security, and wealth on a local and statewide level. However, if the numerous stakeholders engaged are unable to capitalize on these shared interests, make a commitment to work together, and demonstrate our capacity for success, that vision will be lost.
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