- California has approved a plan to tax the electric vehicle battery metal lithium to generate revenue for environmental remediation projects, Reuters reports.
- The tax is structured as a flat-rate per tonne and will go into effect in January.
- Funds generated from the tax will help restore the Salton Sea region from damage in the 20th century.
- Governor Gavin Newsom, a Democrat, approved the tax as part of a must-pass state budget amid divided opinions from the industry over its repercussions.
- Mining executives acknowledged that extracting lithium from the region was expensive and could force them to move to other states with large deposits of lithium-rich brines.
- Lithium industry executives supported the mitigation efforts but preferred a 2% or less of their sales levy. They saw a flat tax as economically destructive.
- Lithium-ion batteries are the most common battery type used in modern EVs. These batteries have higher energy density versus lead-acid or nickel-metal hydride batteries. Their compact size made them ideal for the automotive industry.
- Two of the area’s three lithium companies warned the tax would scare off investors and customers. The suppliers of General Motors (NYSE:GM) and Stellantis N.V. (NYSE:STLA) highlighted the possibility of leaving the state for lithium-rich brine deposits.
- Price Action: GM shares closed lower by 4.95% at $31.80 on Thursday. STLA shares traded lower by 1.29% at $12.20 in the premarket on the last check Friday.
Recap: ConnectOne Bancorp Q2 Earnings
ConnectOne Bancorp (NASDAQ:CNOB) reported its Q2 earnings results on Thursday, July 28, 2022 at 07:00 AM.
Here's what investors need to know about the announcement.
