Posted on 07/01/2022 10:03:32 AM PDT by Rio
A plan to tax lithium, which is widely used in the production of electric vehicle batteries, has been approved in California as part of the state’s efforts to generate revenue for environmental remediation projects.
The decision was pushed despite reservations from players in the battery industry, some of whom argued that a lithium tax would harm the sector. Two of California’s most notable lithium companies such as Controlled Thermal Resources Ltd and EnergySource Minerals LLC have suggested that the tax could scare off potential clients.
The California lithium tax was approved by Governor Gavin Newsom as part of a must-pass state budget on Thursday. As noted in a Reuters report, the state legislature signed off on the tax during its deliberations on Wednesday night.
As per the state’s decision, the lithium tax will adopt a flat rate per tonne model, and it will go into effect in January. The lithium tax is expected to be reviewed every year, with state officials agreeing to consider a potential shift towards a percentage-based tax model instead.
But while California officials seem optimistic about the state’s lithium tax, industry players have stated that the tax would likely do more harm than good. According to Controlled Thermal Resources Ltd, the lithium tax would force the company to miss its deadlines to deliver key battery components to electric vehicle makers like General Motors in 2024 and Stellantis NV the year after.
EnergySource Minerals, on the other hand, has noted that its discussions with potential financiers and an automaker have been halted due to the lithium tax.
Rod Colwell, Controlled Thermal’s chief executive, also stated that California’s lithium tax would be devastating for industry players because it would make locally-produced lithium more expensive than those exported from countries like China.
“Supporting a tax that ensures lithium imports from China are less expensive for auto manufacturers to secure will devastate this promising Californian industry before it has begun,” he said.
Something everyone's favorite genius, Elon Musk, approves of.
HAHAHAAHA. That will help their green utopian goals.
Legalizing weed and then taxing it has worked so well.
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Another way for libtards to put the screws to the little guy and fill their pockets 🤪
Let me translate from politico speak.
Screw you Tesla for leaving our state! We would rather ride in flintstone cars than help you out.
Just like the a Soda tax, the expected tax monies vs what they will really get will be no surprise. Those mines will just shut down and people out of work, but I thought the Left wanted a Green Energy Policy, guess not.
Gas tax
Ev tax
Lithium tax
What next gav ?
Windshield tax ?
Passenger door tax ?
Hatchback tax ?
Black tires tax ?
Tax tax ?
Grifter.
.
You’re not Gavin I am tax ?
All the U-Hauls in California have already left.
(music sting)
All the U-Hauls in California,
Are in a lot in the middle of Texas,
Waiting for a rental to take them back,
So if you’re dreaming about California,
It won’t matter how much you need to ship,
They’re making deals today!
Controlled Thermal Resources Ltd (ETR)and EnergySource Minerals LLC(ESM): I looked these companies up. It appears that CTR recovers (reclaims) lithium from other sources than mining. ESM appears to get the lithium by some sort of brine separation process that may be mining. But neither company strikes me as a traditional mining company. Overseas in third world countries lithium is strip mined with water cannons and it leaves something resembling the lunar landscape. I assure you nothing like that is happening in California.
Both of these companies are competing against lithium sourced from China where the cost of mining it is immaterial. The way companies are run in China is as a welfare project. They employ people regardless of making a profit. This is why Trump kept fining them as they are running companies in other types of economies out of business.
I was thinking of strip mining in huge open pits. I just couldn’t imagine that in CA.
Yes. Democrats are so stupid. They want everyone to move to electric cars, but their going to raise taxes on them.
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If and when EVs become dominant, we will find out just how many different ways government can tax them.
They should have Annually Taxed the Possession of Lithium Batteries in excess of 2 pounds, and then MANDATE the Owners be Personally, Civilly and Criminally Responsible for the proper disposal of said batteries, in perpetuity.
They are a dangerous cabal of psychopathic ne'er-do-wells.
No way could it handle millions more EVs.
ONLY CA.
Legislation recently enacted a ban on new gas-powered tools beginning 01/01/2024.
Presumably, all the gardeners and arborists will go all-electric.
Now THIS?!?!?
CA fervently WANTS people to go electric, but turns right around and slaps a TAX on a KEY RESOURCE??
Liberalism isn’t just a mental disorder; it’s a dangerously unhinged psychopathy.
What these lithium mining companies need to do is just ship the raw ore out of CA before they separate the lithium out. That way they avoid the tax. The problem is that much dirt leaving CA and going east (not even counting the number of people leaving CA) would cause the west coast to become much lighter than the eastern half and could cause North America to tip over. We don’t need another Guam disaster.
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