California’s ‘Lithium Valley’ project powers up EV battery boom with millions in tax breaks
During a press conference yesterday, supervisors in Imperial County, California, announced they had voted unanimously to offer tax rebates, property tax deductions, and the potential for further incentives to any and all battery manufacturers willing to produce Lithium products within the county’s lines. The county shared it is also seeking federal funding and state programs to support its “Lithium Valley” project with hopes of bringing more battery manufacturing to California.
With the global demand for lithium projected to expand tenfold over the next decade on the wings of soaring EV production and demand, the state of California looks to capitalize on its reserve of the precious element by bringing more industry within its borders.
According to the US Geological Survey, the US is only providing 1% of the global lithium being mined and processed. In California especially, the Salton Sea, located in Imperial County, sits as a geothermal resource area believed by many to have serious potential to become a competitive source of lithium.
Under advisory from the US Department of Energy, several projects have been created to establish a “Lithium Valley” in Southern California with hopes to not only garner a larger piece of the elemental pie but reduce the nation’s dependency on other countries for materials vital to current EV battery manufacturing.
In recent years, supervisors from the Board of Imperial County have established conversations with both state and federal governments to realize the full potential of the Salton Sea – a land that once offered a resort community through the 1960s until a shrinking of the lake and contamination from nearby farm runoff led to a massive rise in salinity and death of local wildlife.
Today, the stinky Salton Sea remains home to few, mostly motorsport enthusiasts taking their toys through the desert. Imperial County, however, sees a second life for its Salton Sea as the geothermal activity below the water continues to loosen up lithium that can be mined.
Yesterday, the county’s board announced major tax breaks for battery manufacturers to incentivize them to set up shop in California. Imperial County board chair Ryan Kelley said it best:
Samsung, LG, Panasonic, come to Imperial County. We’ll give you some carne asada, and we’ll show you where it’s at.
I can’t express how California that statement is. Carne asada does sound nice, but up to $1 million in tax rebates probably sounds even better.
Imperial County looks to become California’s Lithium mecca
According to a livestream press event held in Southern California yesterday, the board of supervisors for Imperial County have approved a $50 per-metric-ton rebate on California’s recent lithium severance tax as long as local lithium producers sell their lithium to manufacturers that are also operating in Imperial County. Furthermore, those EV battery manufacturers, for instance, could also receive tax rebates.
EnergySource, a local independent geothermal power producer already involved in the Salton Sea project, could receive up to $1 million a year in rebates by producing 20,000 tons of lithium sold to battery manufacturers in the county, according to Ryan Kelley.
In addition to the unanimous vote for tax rebates, the county board shared it will also opt to join a state capital investment program that could deliver up to 10 years’ worth of partial property tax deductions. Kelley went on to explain that a qualified capital investment of $1 billion could equate to an $80 million deduction of property taxes over the course of a decade.
At the federal level, county officials are also seeking $1 billion to implement a freight rail depot to transport the lithium to other parts of California, as well as other areas in the US like the port of New Orleans, for example. The county has also requested $50 million from the US government to repave roads and fix bridges to again support the logistics of California lithium mining.
Federal representative for Imperial County, Raul Ruiz (D-Indio), plans to continue his work with the board as it hopes to implement a direct liaison between the county and the US Department of Energy. Ruiz spoke to the Salton Sea’s potential as a major source of lithium to automakers and beyond in the US:
Today, the Imperial County Board of Supervisors took an important step forward in realizing the full potential of the lithium at the Salton Sea. I have long envisioned a Salton Sea region that leads the way in renewable energy development in an environmentally conscious manner.
To date, only Los Angeles-based company StateVolt has committed to erecting a $4 billion battery manufacturing plant in Imperial County, but other manufacturers like GM and Korean battery makers, like LG Energy Solution and Panasonic, have already expressed interest.
These incentives should prove enticing for global automakers as many scramble to establish battery production on North American soil so their EVs once again qualify for federal tax credits under new terms outlined in the Inflation Reduction Act that (partially) kicked in on January 1, 2023.
You can watch the full press event from Imperial County outlining its plans for California’s “Lithium Valley” in the video below.
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Wind energy powered 20% of all electricity consumed in Europe (19% in the EU) in 2024, and the EU has set a goal to grow this share to 34% by 2030 and more than 50% by 2050.
To stay on track, the EU needs to install 30 GW of new wind farms annually, but it only managed 13 GW in 2024 – 11.4 GW onshore and 1.4 GW offshore. This is what’s holding the EU back from achieving its wind growth goals.
Three big problems holding Europe’s wind power back
Europe’s wind power growth is stalling for three key reasons:
Permitting delays. Many governments haven’t implemented the EU’s new permitting rules, making it harder for projects to move forward.
Grid connection bottlenecks. Over 500 GW(!) of potential wind capacity is stuck in grid connection queues.
Slow electrification. Europe’s economy isn’t electrifying fast enough to drive demand for more renewable energy.
Brussels-based trade association WindEurope CEO Giles Dickson summed it up: “The EU must urgently tackle all three problems. More wind means cheaper power, which means increased competitiveness.”
Permitting: Germany sets the standard
Permitting remains a massive roadblock, despite new EU rules aimed at streamlining the process. In fact, the situation worsened in 2024 in many countries. The bright spot? Germany. By embracing the EU’s permitting rules — with measures like binding deadlines and treating wind energy as a public interest priority — Germany approved a record 15 GW of new onshore wind in 2024. That’s seven times more than five years ago.
If other governments follow Germany’s lead, Europe could unlock the full potential of wind energy and bolster energy security.
Grid connections: a growing crisis
Access to the electricity grid is now the biggest obstacle to deploying wind energy. And it’s not just about long queues — Europe’s grid infrastructure isn’t expanding fast enough to keep up with demand. A glaring example is Germany’s 900-megawatt (MW) Borkum Riffgrund 3 offshore wind farm. The turbines are ready to go, but the grid connection won’t be in place until 2026.
This issue isn’t isolated. Governments need to accelerate grid expansion if they’re serious about meeting renewable energy targets.
Electrification: falling behind
Wind energy’s growth is also tied to how quickly Europe electrifies its economy. Right now, electricity accounts for just 23% of the EU’s total energy consumption. That needs to jump to 61% by 2050 to align with climate goals. However, electrification efforts in key sectors like transportation, heating, and industry are moving too slowly.
European Commission president Ursula von der Leyen has tasked Energy Commissioner Dan Jørgensen with crafting an Electrification Action Plan. That can’t come soon enough.
More wind farms awarded, but challenges persist
On a positive note, governments across Europe awarded a record 37 GW of new wind capacity (29 GW in the EU) in 2024. But without faster permitting, better grid connections, and increased electrification, these awards won’t translate into the clean energy-producing wind farms Europe desperately needs.
Investments and corporate interest
Investments in wind energy totaled €31 billion in 2024, financing 19 GW of new capacity. While onshore wind investments remained strong at €24 billion, offshore wind funding saw a dip. Final investment decisions for offshore projects remain challenging due to slow permitting and grid delays.
Corporate consumers continue to show strong interest in wind energy. Half of all electricity contracted under Power Purchase Agreements (PPAs) in 2024 was wind. Dedicated wind PPAs were 4 GW out of a total of 12 GW of renewable PPAs.
Read more: Renewables could meet almost half of global electricity demand by 2030 – IEA
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In the Electrek Podcast, we discuss the most popular news in the world of sustainable transport and energy. In this week’s episode, we discuss the official unveiling of the new Tesla Model Y, Mazda 6e, Aptera solar car production-intent, and more.
The show is live every Friday at 4 p.m. ET on Electrek’s YouTube channel.
As a reminder, we’ll have an accompanying post, like this one, on the site with an embedded link to the live stream. Head to the YouTube channel to get your questions and comments in.
After the show ends at around 5 p.m. ET, the video will be archived on YouTube and the audio on all your favorite podcast apps:
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The Chinese EV leader is launching a new flagship electric sedan. BYD’s new Han L EV leaked in China on Friday, revealing a potential Tesla Model S Plaid challenger.
What we know about the BYD Han L EV so far
We knew it was coming soon after BYD teased the Han L on social media a few days ago. Now, we are learning more about what to expect.
BYD’s new electric sedan appeared in China’s latest Ministry of Industry and Information Tech (MIIT) filing, a catalog of new vehicles that will soon be sold.
The filing revealed four versions, including two EV and two PHEV models. The Han L EV will be available in single- and dual-motor configurations. With a peak power of 580 kW (777 hp), the single-motor model packs more power than expected.
BYD’s dual-motor Han L gains an additional 230 kW (308 hp) front-mounted motor. As CnEVPost pointed out, the vehicle’s back has a “2.7S” badge, which suggests a 0 to 100 km/h (0 to 62 mph) sprint time of just 2.7 seconds.
To put that into perspective, the Tesla Model S Plaid can accelerate from 0 to 100 km in 2.1 seconds. In China, the Model S Plaid starts at RBM 814,900, or over $110,000. Speaking of Tesla, the EV leader just unveiled its highly anticipated Model Y “Juniper” refresh in China on Thursday. It starts at RMB 263,500 ($36,000).
BYD already sells the Han EV in China, starting at around RMB 200,000. However, the single front motor, with a peak power of 180 kW, is much less potent than the “L” model. The Han EV can accelerate from 0 to 100 km/h in 7.9 seconds.
At 5,050 mm long, 1,960 mm wide, and 1,505 mm tall with a wheelbase of 2,970 mm, BYD’s new Han L is roughly the size of the Model Y (4,970 mm long, 1,964 mm wide, 1,445 mm tall, wheelbase of 2,960 mm).
Other than that it will use a lithium iron phosphate (LFP) pack from BYD’s FinDreams unit, no other battery specs were revealed. Check back soon for the full rundown.
Source: CnEVPost, China MIIT
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