California Taxes Lithium, a Key Component in EV Batteries

Opponents argue that the tax will harm the emerging California lithium industry and make imports from China more economic.

California legislators approved a $400 per ton tax on lithium, a metal widely used in batteries for electric vehicles, in a bill passed as part of the state budget. The bill, SB 125, implements a tiered tax system on a per-ton basis. The tax starts at $400 per metric ton for up to 20,000 tons produced, $600 per metric ton for 20,000 tons to 30,000 tons,…