Scheyder, E. (2022, July 1). California approves lithium tax despite industry’s warnings. Reuters. Retrieved August 28, 2022, from https://www.reuters.com/business/sustainable-business/california-approves-lithium-tax-despite-industrys-warnings-2022-07-01/
In June of 2022, California passed a tax on the electric vehicle battery metal lithium for various environmental restoration projects, including the clean-up of the Salton Sea region, which has been damaged by pesticide use for farming and has a start-up lithium industry. The tax will go into effect in January. However, there are many industry concerns that the tax may harm the state’s lithium sector by scaring off investors and customers, who may switch to lithium from Utah or Arkansas.
This article relates to environmental science because it discusses a policy aimed at improving the environment and reversing industrial damage. I don’t have an overwhelmingly positive or negative reaction to this lithium tax because there seems to be arguments both for and against it that I would have to research more in-depth. However, it is sad what harm this tax may bring to the lithium industry. I think lithium is a big part of a more clean future, given its use in electric cars. This is in addition to the new methods being developed for cleaner mining.
This article was all new information to me. Lithium is a key for making electric vehicles. What effect does this tax have on lithium?
Thanks for your question! The article said the tax is a “flat-rate per tonne” of lithium so I would assume that the mining companies have to pay a tax for each tonne of lithium they mine. This would mean that California lithium fwould be more expensive, scaring off investors.
Since lithium is needed to make electric vehicles, and since there is a tax, how does this affect the production of electric vehicles?
Thanks for this question! I don’t think this tax will change the production of electric vehicles drastically. Manufactures just might turn to non-California mines for their lithium.