Powering Up Lithium Valley

Chapter 1: Cultivating hope

Adjacent to the southwest edge of the Salton Sea, a billboard welcomes visitors. Its vibrant banners illustrate a variety of activities: golfing, boating, fishing, camping, and nature trails. A prominent red arrow directing towards the lake implies that these recreational pursuits are available in close proximity. However, the billboard is worn: fading, peeling, and marked with graffiti.

The advertisement symbolizes the decline of the former resort destination. During the 1950s and ’60s, tourists crowded to California’s largest lake for water sports, outdoor recreations, and performances by entertainers such as Frank Sinatra and the Beach Boys.

Currently, the lake is receding, revealing patches of arid lake bed, or playa, at its periphery. The shoreline is occupied not by sunbathers but by countless hay bales — part of a plan to mitigate windblown dust from the playa that affects the health of nearby residents.

Fish remains and barnacle shells crunch beneath feet. The rising salinity and harmful runoff from the local agricultural sector have devastated aquatic ecosystems, rendering the water hazardous for human recreation. On scorching, humid days, when the lake emits hydrogen sulfide gas, a “rotten egg” odor blankets the atmosphere.

In communities adjacent to the lake, where a resort “riviera” was once envisioned, deteriorating mobile home parks are signs of severe economic hardship among the predominantly Hispanic population. Rates of poverty and unemployment in this region surpass state averages. Employment opportunities beyond low-wage, seasonal jobs at local farms — which supply around two-thirds of America’s winter fruits and vegetables — are scarce.

Nonetheless, roughly a mile beneath the surface of the Salton Sea’s southern shore lies a resource so desirable that it has the capacity to fundamentally change the area’s prospects, the health of the sea — and the electrical future of the nation.

White gold

Warm geothermal brine beneath the lake bed and surrounding areas
“`has been recognized as an abundant reservoir of lithium, an essential element for producing lithium-ion batteries utilized in powering mobile devices and electric vehicles, as well as in storing energy generated from solar power.

“We’re transitioning from an economy reliant on fossil fuels to one that depends on minerals, where the components used for battery manufacturing are more crucial than ever,” remarks Manuel Pastor, Distinguished Professor of Sociology and American Studies and Ethnicity at the USC Dornsife College of Letters, Arts and Sciences and head of the USC Equity Research Institute. “In the geothermal brine of the Salton Sea, there’s sufficient lithium to electrify the entire U.S. auto fleet and still have an excess of 100 million batteries.”

Pastor is among various USC scholars who have focused their research on this area to examine historical and current challenges, as well as future prospects. Their investigations, often conducted alongside community leaders, are contributing towards establishing a framework for an inclusive and sustainable lithium economy that fosters a thriving industry while supporting local populations and preserving delicate ecosystems.

The significant lithium deposits in Imperial Valley have drawn multiple businesses eager to be the pioneers in developing a feasible, scalable technique for extracting the coveted mineral from the brine. This spurt of interest in “white gold” has led to the region acquiring a new moniker: Lithium Valley.

Optimism prevails regarding the burgeoning lithium sector becoming economically viable, revitalizing the local economy with high-caliber employment opportunities, and generating tax income to finance the restoration of the Salton Sea. Nevertheless, these results are not guaranteed — especially in a locale that has faced economic and environmental challenges due to industrial exploitation for many years.

“The microcosm of the Salton Sea region prompts one to ponder, ‘What does it signify to transition to a clean energy economy?’” remarks Pastor, who co-penned the recent publication Charging Forward: Lithium Valley, Electric Vehicles, and a Just Future with Chris Benner, a professor of environmental studies and sociology at the University of California, Santa Cruz. “Who will reap the rewards from the boom — and who will continue to be marginalized?”

Chapter 2: Initiating operations

Lithium Valley represents one out of several locales in the United States — including the Smackover Formation in Arkansas and Thacker Pass in Nevada — whose lithium resources have the potential to enhance the nation’s clean energy self-sufficiency. Currently, Australia, Chile, and China are recognized as the largest suppliers of lithium globally. Greys Sošić, a professor of data sciences and operations at the USC Marshall School of Business, emphasizes that supply chain problems and lithium price surges during the COVID-19 pandemic have underscored the hazards of reliance on international sources.

“We truly need to establish a sturdy and reliable domestic industrial foundation for lithium manufacturing,” states Sošić, whose research lies at the intersection of sustainability and supply chain logistics.

Direct lithium extraction (DLE), the extraction technique being developed in the Salton Sea, is poised to be the world’s most ecologically sustainable approach for procuring lithium. Warm brines from beneath the sea are presently being extracted at geothermal energy facilities where the steam drives turbines to generate power.

“DLE has the capability of forming a closed loop because once the brine is extracted, lithium can be separated,” explains Pastor. “The heat can be utilized to generate the electricity needed for the processes, and subsequently, the brine can be reinjected back underground.”

In Australia, lithium is obtained from rock formations, and in Chile and Argentina, it is extracted by pumping brine from salt flats into evaporation pools. In contrast to these methods, DLE “necessitates less energy, utilizes less water, and has a reduced environmental impact,” mentions Sošić.

For Lithium Valley to emerge as a prominent player in the upcoming domestic market, it must swiftly establish its feasibility. “The Salton Sea is currently in a bit of a race to become the leading source of domestic lithium,” Pastor notes. “If you’re early to the game, you can secure contracts [with battery manufacturers] and establish dependable supply chains.”

Shon Hiatt, an associate professor of management and organization at USC Marshall and director of USC Marshall’s Business of Energy Transition Initiative, describes Lithium Valley as the underdog in competition with other U.S. regions. “I believe the Smackover area in Arkansas will yield the highest lithium extraction,” Hiatt suggests.

“It’s remarkably swift to obtain permits for development and construction in Arkansas compared to California,” he explains, highlighting California’s intricate permitting frameworks and environmental laws. Companies have been harvesting the chemical bromine from the Smackover’s aquifer since the 1950s, creating a well-established infrastructure conducive to DLE development. These elements have attracted traditional energy entities like Exxon Mobil Corp. and Chevron Corp., which are investing in lithium-extraction initiatives there.

Although global lithium demand is forecasted to rise from 2020 levels by 500% by 2050, it has softened in the short term, leading to a more than 85% plunge in prices over the last two years. This compels companies to rush in developing extraction technologies while also strategizing for long-term profitability.

According to Hiatt, energy behemoths such as Exxon Mobil and Chevron might be in a more favorable position to absorb losses from their lithium investments compared to the comparatively lesser firms operating in the Salton Sea, which include Controlled Thermal Resources Holdings Inc., EnergySource Minerals, and BHE Renewables (a division of Berkshire Hathaway Energy Co.).

“The future of Lithium Valley is contingent upon whether these companies can enhance their technologies to a point where lithium

“a profitable avenue for lithium extraction is possible,” states Hiatt.

Stirring up dust

The urgency for advancement has prompted officials in Imperial County to expedite California’s usually lengthy environmental assessment procedures for new developments. Instead of reviewing ecological consequences on an individual project level, the county has sanctioned a Programmatic Environmental Impact Report (PEIR) encompassing all lithium and geothermal initiatives within a designated region — thus freeing specific projects from thorough examination.

However, numerous community advocates and scholars express apprehension that simplifying the route for lithium industry’s expansion might jeopardize public health. The area — a desert reliant on water brought in from elsewhere for its agricultural endeavors — is already plagued by environmental health threats: severe heatwaves, agricultural chemicals, and air contaminants from industrial operations, diesel truck traffic, and dust storms.

Although the Salton Sea has been labeled the most significant environmental catastrophe in California’s history, the valley’s striking scenery reveals an intriguing ecological background. Once, this desert flourished to nourish the nation, and a grand sea emerged from an engineering blunder. In 1905, flooding from the Colorado River breached a construction canal in the valley, creating the Salton Sea, with water levels remaining mostly stable until the late 1990s.

Since then, rising temperatures have heightened evaporation from the lake, while improved agricultural irrigation practices and a decrease in the county’s share of Colorado River water have diminished inflows. As the sea recedes and its dusty bed becomes more visible, the valley’s intense dust storms have escalated.

Jill Johnston, an associate professor specializing in population and public health sciences at the Keck School of Medicine of USC and spatial sciences at USC Dornsife, has collaborated with the Imperial Valley environmental justice organization Comite Civico del Valle (CCV) for more than ten years on educating about and researching air quality. She characterizes the dust from the playa as “a hazardous mixture.”

“The Salton Sea served as a catchment for all the agricultural runoff in this region,” Johnston states, identifying DDT, arsenic, and PCBs as some of the toxic elements from fertilizers and pesticides trapped in the sediment. “When this dust is stirred up, you’re not just inhaling the dust; you might also be inhaling those harmful chemicals that pose serious health risks.”

In 2017, Johnston and Shohreh Farzan, who also serves as an associate professor of population and public health sciences at Keck School of Medicine, combined efforts with CCV and five local primary schools to examine the effect of dust on children’s respiratory health over time. Their research — published in October 2024 and co-authored by several CCV leaders — revealed that dust from the sea induces asthma, coughing, wheezing, and disrupted sleep among local children.

The proximity of a child’s home to the sea correlates with a higher likelihood of experiencing wheezing and bronchitis symptoms. A staggering twenty-four percent of children in the vicinity suffer from asthma — significantly above the national average of 8.4% for boys and 5.5% for girls.

Johnston expresses her worries that the establishment of new lithium-extraction facilities on the rapidly receding shores of the sea could elevate health risks for the community.

“Construction operations can disturb and disperse some of the playa,” Johnston points out — effectively releasing more dust into the atmosphere. “Extraction processes generate substantial waste, both hazardous materials and wastewater. This could expose communities to these contaminants in new ways.”

Such risks, in conjunction with a probable rise in truck traffic to support the burgeoning industry, underscore a paradox central to Lithium Valley’s development. While lithium will assist in hastening the country’s shift toward sustainable transportation, the extraction sector might further degrade air and water quality for surrounding communities.

These concerns led CCV and Earthworks, a national environmental advocacy group, to file a lawsuit against Imperial County last year for more mitigation efforts concerning lithium-extraction projects by Controlled Thermal Resources to mitigate local impacts. CCV and Earthworks claimed that a proposed 7,000-acre lithium and geothermal energy site, dubbed “Hell’s Kitchen,” had not been thoroughly evaluated for its potential ramifications on air quality and the community’s fresh water resources.

This January, a judge in Imperial County ruled in favor of the county, asserting that further study was unnecessary, thus enabling the commencement of construction at Hell’s Kitchen within months following a year of delays.

“This decision enables us to proceed with our efforts to transform Imperial County into an epicenter of clean energy innovation and sustainable economic growth,” stated Board of Supervisors Chairman John Hawk to the Desert Sun newspaper at the time of the ruling.

Pastor recognizes the complexities involved in achieving a balance between community welfare and industry demands. “Trust builds over time,” he remarks. “Markets shift rapidly.”

Chapter 3: Careers of the electric future

For the disadvantaged populations surrounding the sea, Lithium Valley represents the potential for a surge in job opportunities. At Imperial Valley College, aworkforce education certificate program is currently equipping local residents for lithium-related employment, such as operators of mineral extraction facilities and chemical laboratory technicians.

“Lithium firms have made lofty commitments regarding local job creation,” comments Pastor.

However, Pastor expresses doubt about Lithium Valley’s capacity to substantially enhance employment opportunities in the community. A continuous stream of sectors — such as geothermal, solar, and wind energy — have previously emerged in the valley with promises of transformative impacts on local prosperity.

“This region has seen its fair share of schemes, frauds, and charlatans,” remarks Pastor, reflecting on the area’s track record of get-rich-quick scams that have encompassed everything from agriculture and water to real estate and tourism. “Within the community, there is a pervasive feeling of unfulfilled promises, of abandonment, and of neglect — which hinders collaboration [with industries] due to a deep-seated mistrust,” Pastor adds.

During the early 2010s, when the county authorized the establishment of extensive solar farms, many regional workers received certification as solar installers, expecting a wave of new job openings. Instead, employers required only a small number of highly trained personnel for ongoing maintenance of the solar farms. Most job openings were short-term construction roles, and agricultural positions were replaced by solar initiatives on previously cultivated land.

A similar pattern might emerge in the lithium extraction sector. Sošić mentioned that considerable job growth will be realized only if Lithium Valley fosters a broader industrial network — encompassing lithium refinement, manufacturing of cell components, battery cell production, and battery recycling. “Incorporating all these factors can potentially revitalize the region,” she remarks.

In 2023, Statevolt, a battery production startup, secured land to construct a “gigafactory” in Lithium Valley. However, the company’s earlier attempts to establish similar factories in the UK and Italy have faced setbacks, raising doubts about the California initiative.

Hiatt is skeptical that the Imperial Valley can expand its lithium sector beyond mere extraction. “The likely scenario is that they would transport the obtained lithium to Nevada for processing, as there are existing battery plants in Nevada,” Hiatt observes, pointing out that Nevada, akin to Arkansas, is more conducive to business than California.

Granting community dividends

Pastor, resonating with a rising wave of community sentiments, asserts that the neighborhoods surrounding the sea ought to receive financial advantages from lithium extraction that surpass simple job development.

“Lithium holds value not only because of corporations, but also due to public sentiment,” Pastor emphasizes, pointing out taxpayer contributions to the green energy transition, with over $137 million in public grants already directed to lithium firms. “How does the public demand a return?”

Local organizations have ardently pushed for community benefit agreements from Lithium Valley enterprises. One achievement has been the introduction of a county excise tax on lithium extraction, determined by the amount of lithium extracted. At least 30% of these forthcoming funds are allocated for communities impacted by extraction endeavors.

Twenty percent of the generated revenue is designated for the Salton Sea Restoration Fund, a program overseen by the California Department of Fish and Wildlife. Restoring the sea, establishing wetland wildlife habitats, and reviving plant growth could mitigate dust issues and provide essential outdoor recreation opportunities for locals. “The sea should be an asset for the residents,” Johnston states.

Pastor envisions that Lithium Valley will advance community compensation further by incorporating direct payments to residents. He cites the Alaska Permanent Fund, which allocates oil extraction revenues, as a reference. “If you reside in Alaska, you receive a dividend every year,” Pastor explains. “We are hopeful that this concept is explored as a potential option for the Imperial Valley.”

For Luis Olmedo, executive director of CCV, this juncture offers a chance for Lithium Valley to emerge as a global frontrunner in “cultivating an industry that prioritizes safety, invests in the community through agreements on community benefits, project labor agreements, and enforceable mitigation commitments,” he asserts.

In December, CCV united with six other environmental justice organizations and labor factions to establish a coalition called Valle Unido Por Beneficios Comunitarios, which translates to United Valley for Community Benefits. This coalition urges companies involved in lithium extraction to commit legally to fair wages, environmental protections, respect for Indigenous land rights, workplace safety, infrastructure improvements, among others.

Such initiatives would establish a foundation for a clean energy economy that embodies what Pastor refers to as “green justice”: putting the welfare of marginalized communities at the forefront of decisions surrounding extractive practices, who have been historically excluded while disproportionately bearing the burdens of fossil fuel pollution.

As Pastor and Benner articulate in Charging Forward, “To transform the energy systems that power our vehicles, we must also reform the power systems that govern our policies.”