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Lithium Tax on Tap as Boon for California’s Imperial Valley

June 29, 2022, 6:44 PM

California Democrats want to impose a tax on companies that extract lithium from brine in the Salton Sea to feed growing demand for electric vehicles.

The proposed lithium tax, one piece of the state’s $234 billion budget package headed for approval this week, would take effect Jan. 1, 2023. State lawmakers representing the Salton Sea area in Imperial County and Gov. Gavin Newsom (D) crafted the tax, with support from local officials, as a way to fund infrastructure and environmental restoration projects in the area.

One of the three companies working to extract lithium at the unique body of water ...