President Biden Touts Imperial Valley’s Lithium Potential

This storywas published February 22, 2022 by the Calexico Chronicle.

Putting the Imperial Valley on a national stage, President Joe Biden announced major investments in domestic production of key minerals critical for modern technologies during a roundtable from the White House on Tuesday, Feb. 22.

Biden made the announcement during a discussion that included Gov. Gavin Newsom and various stakeholders, including the chair of the Lithium Valley Commission and the CEO of Berkshire Hathaway, which received a $15 million grant from the U.S. Department of Energy to build a lithium extraction demonstration project at the Salton Sea.

Tuesday’s roundtable comes nearly one year after Biden ordered a review of the country’s supply chain of critical minerals key to things like electric vehicles, smart phones and wind turbines, concluding that importing nearly 100 percent of those sources proved a national security risk.

The United States imports nearly all of its rare earth minerals from China and Chile, and expects demand to increase by 400 percent to 600 percent over the next several decades, Biden said.

“When it comes to clean energy, China has spent several years cornering the market on many of the materials that power the technologies that we rely on,” Biden said. “That’s why I committed us to build a clean energy supply chain stamped ‘Made in America.’ Made in America means using products, parts and materials as well as minerals right here that are in the United States of America. It means betting on American workers.”

The Salton Sea could be part of the solution. Millions of metric tons of lithium are believed to be below the ground near the Salton Sea, and developers are racing to tap that resource.

In addition to Berkshire Hathaway, both Controlled Thermal Resources and EnergySource Minerals are attempting to prove the feasibility of extracting lithium from the geothermal brine at the Salton Sea.

MP Materials is getting $35 million from the U.S. Department of Defense to separate and process heavy rare earth elements at its facility in Mountain Pass, California. MP Materials is also working to set up an end-to-end domestic supply chain for permanent magnets, which are used in electric vehicles, electronics, wind turbines and defense systems.

Redwood Materials, based in Nevada, is partnering with Ford and Volvo to recycle lithium-ion batteries in order to reduce the need for new mining, Biden said.

A lithium economy at the Salton Sea could transform Imperial and Coachella valleys, and alleviate the poverty there, which is among the highest in the state.

But the historical boom-and-bust cycles of mining towns continue to haunt other parts of the country, with communities unable to recover long after mining companies close operations and leave town.

Biden said his administration is working to modernize the country’s mining laws and regulations, some of which are 150 years old.

He has also asked the Secretary of Energy, Jennifer Granholm, to visit Imperial Valley to hear from local residents how lithium extraction “and hear directly from local residents how this will impact on them.”

“Correct me, Governor, if I am wrong, but I think this has the fifth-highest unemployment rate in California and a poverty rate is over 24 percent, so this ought to be not only good for lithium but good for the residents,” Biden said.

“I thank you for recognizing that the Salton Sea region is already battling with some of the highest unemployment rates,” said Silvia Paz, chair of the Lithium Valley Commission, when Biden asked her to weigh in.

“When our community hears about the excitement around lithium, there is a cautious optimism because it falls around this context: a community that has seen unfulfilled promises. And could this be a game changer? Yes, it could, if done right,” said Paz, also executive director of Alianza Coachella Valley. “It means that we are going to have to double down on the investments going beyond incentivizing career and educational pathways. We need to make sure that there’s investments to get this community ready. When we talk about the potential of lithium, we need to capture as many of the jobs as possible. We need to be able to capture as many of the supply chain elements as possible.”

Gov. Newsom has referred to the area as the Saudi Arabia of lithium, drawing parallels to that country’s economic transformation following the discovery and exploitation of its petroleum resources.

Newsom’s administration has pledged to work on a new regulatory framework to spur private investment, create loan programs to reduce investment risks, to focus on environmental and labor standards, and to create economic opportunity in part of the state that deserves more investment and more attention.

“To hear you reinforce that frame that it’s not just about growth in the abstract, it’s about inclusion, it’s about reconciling the past in making sure that our values are front and center in our policy to accelerate into the future. And so, just those words are important,” Newsom said in response to Paz.

“But I want you to know: We’re following up by codifying them and organizing, with Silvia and her team, with a community benefits package focusing not just on the economic opportunity but making sure that the growth and inclusion strategies include local hires, include local benefits in a sustainable way,” Newsom continued.

But until that happens, local officials continue to worry that the Imperial Valley will be left behind as California positions itself as a clean economy leader.

“As unprecedented lithium production plans continue to take shape, we stand firm on the need to ensure inclusive transformation to build a more equitable economy that levels the playing field for disadvantaged communities,” said Comite Civico del Valle Executive Director Luis Olmedo in a written statement on Tuesday.

Olmedo sits on the Lithium Valley Commission along with Paz, District 4 Imperial County Supervisor Ryan Kelley and several other stakeholders.

“This country, this nation and this state have been growing in leaps and bounds. The Imperial Valley should not be the exception. We need to grow at the same accelerated speed,” Olmedo said to the Calexico Chronicle. “In the governor’s words, it’s an opportunity to right the wrongs of the past.”

Newsom spoke with local leaders, including Olmedo, Kelley and Assembly member Eduardo Garcia, D-Coachella, on Tuesday morning prior to the roundtable with Biden.

“I talked about workforce development, education, opportunities, having people wanting to live here and opportunities here. He was very receptive,” said Kelley, who is vice chair of the Lithium Valley Commission.

On Feb. 15, the county Board of Supervisors approved the Imperial County Lithium Valley Economic Opportunity Investment Plan, basically a roadmap on how the county can capture the benefits of the coming lithium industry on multiple levels.

Assembly member Garcia told the Calexico Chronicle that his office is exploring various bill proposals and initiatives to ensure that the local community benefits directly from lithium extraction and attendant industries at the Salton Sea.

“The people of Imperial County come first. That was the message we gave to (Newsom) as it relates to this opportunity,” Garcia said. “We’re working closely with the governor’s office. There is a tremendous amount of economic benefits that are going to be reaped. The community needs to see a substantial share of it.”

The Calexico Chronicle offers local news, features and sports stories from Calexico, Holtville and other areas of Imperial Valley.