S1: Welcome in San Diego. I'm Jade Hindman. From DNA test. To artifacts. We'll tell you what one historian is doing to preserve black history in the region. This is KPBS Midday Edition. Connecting our communities through conversation. Last month , the Department of Energy announced it would provide a loan of more than $1 billion to support the growth of the domestic lithium industry. The mineral is critical to the world's transition to green energy. But President Trump's push to freeze federal funds could threaten that. Philip Salata is the environment and energy investigative reporter at a news source. He sat down with KPBS reporter Andrew Bowen to break down how this federal spending freeze could impact lithium and other developments in the Imperial Valley. Take a listen.
S2: So much of this news about this federal spending freeze has been up in the air. It's changing minute to minute. What do we know so far , at least in terms of how the Trump administration's direction could impact the lithium industry ? Right.
S3: Well , here's what we do know. So first of all , it's $1.36 billion loan that the Department of Energy announced early January. It was still under the Biden administration. And also , there was a key word in the press release , which was that the loan would be awarded if energy Source minerals or Atlas as the the their lithium extraction project is called. The project needs to meet certain conditions. Now those conditions are something the company isn't really talking about yet and as I understand , they're still being negotiated. So even at that point , the money wasn't yet in the accounts of the lithium company yet. But it was for the lithium industry advocates anyway. Really , really good news. Advocates have been trying to vie for federal funds to make Lithium Valley a reality for some years already. But then incomes , but then incomes. President Trump's memo the memo announced a temporary freeze on federal spending so that the administration could ensure that funds were being in the language of the memo dedicated to advancing administration priorities. And what are these priorities ? Well , the memo says that the Green New Deal social engineering policies are a waste of taxpayer dollars. So many renewable energy initiatives fall under the Green New Deal , which is shorthand , a kind of framework for federal policies to address climate change as well as impacts on lower income communities. And it emphasizes the need for sustainable energy development. So that puts lithium into question. Right. So lithium is a key ingredient for making electric car batteries. It's one of those minerals that is at the center of transitioning away from fossil fuels. So that is what we do know. And after that , it gets really complicated. And maybe we can peel that back. Yeah.
S2: Yeah. So lots to unpack there. Definitely. You said that this loan , it's a $1.36 billion. It was offered to Energy Source Minerals. So tell me more about this company and how it was planning on actually spending that money.
S3: So I've been in touch with the spokesperson for Energy Source Minerals , and they have been very reticent to speak on this topic publicly , especially with so many unknowns. Still , I can say that for the Atlas project , $1.36 billion of federal backing are important. Many of the funding schemes for these projects , they rely on several sources , but that's a large single sum of money that could really get things moving.
S2: So I think the Trump administration's rationale in trying to freeze all of this public spending is that , you know , it should be the private industry that is that is making investments. The government shouldn't be spending all of this money , and it shouldn't be using taxpayer dollars for these things.
S3: And I also understand that the funding schemes are very multilateral , right. It takes a lot of money to get these projects up and started. Also , the type of lithium mining that they're doing is it's based on a new technology that hasn't been yet fully tested on a commercial level. So the various companies that are vying to be the first to extract lithium there. They're still testing that technology , and that takes a lot of funding to really get started and see if it's going to be commercially efficacious. And it also means that , you know , there are many question marks whether it will be commercially viable and whether that money will come back to these investors. So those are the questions on the table that I believe make will maybe make or break Lithium Valley at all.
S2: And when you say lithium Valley , we're talking about an area in the Imperial Valley where there are what exactly ? Lithium deposits , I believe , deep underground. Tell me more about this , this new technology that that they're trying to employ to extract lithium in the Imperial Valley and how it differs from how we get lithium today. Sure.
S3: Sure. I think we can locate the situation in a couple of ways. So first of all , the US depends on foreign suppliers for lithium , right ? China currently produces half of the of the world's batteries. Chile sits on the majority of the world's untapped lithium reserves. But in Imperial Valley , deep under the Salton Sea , in the geothermal brines that exist there , there is enough lithium to make the US a huge contender on the world stage. Now , we've known there's been lithium there for many , many years , right ? There have been geothermal projects out there for , you know , since the 70s. So they've known what's been in the brine. But the trick has been how to really extract it and turn it into a viable commercial product. So this new process called direct lithium extraction. Basically the concept is that from a pre-existing geothermal plant , there's basically a looped system of water that they're pulling these brines from deep under the earth that are full of these minerals , and the heat is creating energy. And in the process , they insert some chemicals to take out the lithium. Uh , and then you know , how to do that efficiently is a whole engineering conundrum. But since they are now nearing the moment of having that technology to be viable , it's looking like we can actually commercialize this process.
S2: And the United States has classified lithium as a quote unquote , critical mineral since 2020.
S3: Right. So I think there's it's important to isolate some variables. So President Trump has announced a US withdrawal from the Paris climate agreement. He has stepped away from Biden's goals of making 50% of new car sales in the US electric. Trump has also falsely called those goals a mandate. But in any case , he's also announced plans to expand fossil fuel extraction. And then , as we've already mentioned , he's issued statements with the memo that signal this move away from renewable energy. But lithium was put on a list of minerals considered to be critical to national security under the previous Trump administration. And Trump did include critical minerals in his declaration of a national energy emergency. So inside of this kaleidoscope , we see different reasons why or why not. This loan may go through , but it's somehow in the cracks of these complicated contradictions.
S2:
S3: We see a precedent of President Trump supporting industry , and it is this critical mineral. There are lots of reasons why I see it happening , especially with the technology being on the table. There are many reasons why I think it should happen. I will say though. So over the course of my reporting , my attention is really turning to the federal funds that environmental justice organizations rely on to make sure that the green energy transition is carried out equitably. Right. So a lot of the language in that memo really points a finger on environmental justice issues. And so my attention is starting to turn elsewhere. Right. So we have , for example , a very important environmental justice organization in Imperial Valley called Comité del Valle that , for example , has told me they have subcontracts that rely on federal funds that are under review. Right. And these organizations play a huge role in interfacing with community members and advocating for their needs. So while we see this president of Trump supporting industry , I think the memo speaks to these other points. Right. They've called these kinds of projects as Marxist equity. But my eyes are really going to be on how these challenges are going to be impacting community organizations that are that are going to be facing the impacts of these kinds of statements. As for the loan. My intuition is it may actually go through , right. It kind of fits in line with this project of accruing the minerals that we're going to need to continue on this whole process of vying to be in a position that's on the same level of China's industry , for example.
S2: And we'll actually hear from that group. You mentioned Comite del Valle later in the show. But I want to ask you about a lawsuit that they were involved with. They filed a lawsuit in the California Superior Court , and they were seeking to block this project. Right. Tell me more about that lawsuit. And you know where it stands now. Right.
S3: Right. So , yes , Comité del Valle , this local organization teamed up with a national organization called earthworks that's focused on protecting communities from the impacts of , of extractive industries. And they took an issue with the Imperial County's Environmental impact Report for another project project under the company controlled thermal resources. And in that lawsuit , they were speaking about issues with how the environmental impact Report addressed water and how much water will be used. Also , concerns around indigenous cultural sites and their relationship with the indigenous community , and how that was going to go forward and impact and instruct how the projects get carried out. That being the case. Last month , that lawsuit was dismissed. So in fact , it was a very big kind of narrative shift in the situation of lithium in Imperial Valley. Right. We had the green light from the judge dismissing the lawsuit. This potential $1.36 billion. And then suddenly , right , this next stick got put in the wheel , sending all questions all over the place.
S2: So the lawsuit was dismissed.
S3: In fact , several organizations in the Valley have now reorganized under a new kind of umbrella organization focused specifically on advocating for the community for Lithium Valley related issues. Vale Unido And they are all speaking about taking various pathways to ensure that resources come back to the community and that something gets written down on paper. Right. Because there are a lot of promises in the air right now. The industry speaks about providing jobs , and the county also wants Lithium Valley to take off as quickly as possible to bring those jobs in. But how that's all going to play out really depends on this kind of push and pull between community advocates , community voices and those needs being articulated and put down in writing. And for a lot of those organizations , there are too many question marks on the table to just turn away and say that this is all a go ahead from their point of view as to future lawsuits. I mean , right now , there's another important element to pay attention to. The lithium Valley specific plan is out. And so these organizations are piling through this A new plan that lays out how Lithium Valley will look like , what the impacts will be , and kind of speaks to these long term expectations of how the project will roll out. So there's going to be a lot of work interfacing with that plan , communicating that back to the community and then insisting that the community benefits get laid out in a concrete way.
S2:
S3: And now that this specific plan is on the table and is going to be analyzed by everyone and , and kind of scrutinized. Uh , my questions are going to be , you know , are there enough initiatives spelled out in this specific plan that answer community needs ? And what are the organizations going to do to be able to articulate those needs and get them down on paper. You know , the big narrative is that if it's not written down , there's not going to be the tools to hold companies or the county accountable in the future. So. And if we don't do that early on , then those tools will be out of our hands. So that's what's at play from the community organizing perspective. And in the meantime , I do think it's very important to think about the macro , right ? I mean , if we are pulling out of these larger , uh , you know , global agreements around , uh , mitigating the impacts of fossil fuels on , on climate change , these projects are going to be important , but they're not foolproof. Right. It's still extraction , right ? And so the more environmentally friendly they can be , and the more we also listen to their localized articulations and how they're affecting local communities. I think the more we can understand And these , you know , the tentacles of climate change that really articulate themselves locally.
S1: That was environment and energy. Investigative reporter Philip Salata speaking with KPBS reporter Andrew Bowen. Coming up , what lithium mining could mean for the environment and what it could mean for building wealth.
S4: You have large scale industries , novel industries that have not been proven anywhere else. There are greater risks to our community , and there could be greater benefits , too.
S1: KPBS Midday Edition is back after the break. You're listening to KPBS Midday Edition. I'm Jade Hindman. Lithium Valley is one step closer to becoming reality as a major lithium mining project moves forward. But environmental advocates in the Imperial Valley are working hard to ensure the local community benefits from this potential booming industry. Our next guest has been at the forefront of this fight for many years. I'm here with Luis Olmedo , the executive director of Comite del Valle , a local environmental justice group. He joins me now to talk about CCV and their advocacy efforts moving forward. Luis , welcome to the show. Yes.
S4: Yes. Hi. Thank you.
S1: So earlier in our show , we mentioned a lawsuit that CTV and earthworks filed last year against Imperial County over its decision to greenlight the Hell's Kitchen lithium mining project. That case was recently dismissed by the court. And I know CCV has already released a statement reaffirming its commitment to , quote , responsible lithium extraction.
S4: I mean , nothing has changed. We have brought extensive experience. Uh , experts , uh , engineers , uh , scientists , researchers , uh , even legal , uh , California Environmental Quality Act experts. This is all everything we've put forward is is is based on extensive , uh , review of the environmental impact report. Uh , this is nothing to do with the company in in their brand itself. This just has to do with the public process. And I think there's a lot of confusion out there that whether we're in support or we're against this , is this is a very basic process that that anyone. Anyone and everyone is encouraged to participate , because this has to do with how well our natural resources , our infrastructures , our public health. And when you have large scale industries , novel industries that have not been proven anywhere else. Uh , there are greater risks to our community and there could be greater benefits too , but there has to be a fair negotiation. And that's what California Environmental Quality Act offers. It gives the public an opportunity to fully engage in in in that process. Mhm.
S1: Mhm. And I know , you know , in all of this you want to make sure that the local community again benefits from this project , both from the standpoint of being able to build wealth and also from an environmental standpoint.
S4: So to answer the first part of it is we've had a lot of broken dreams , empty promises. I mean , I go back to 20 years when the Madres del Rio Nuevo or the Mothers of Nuevo , or the neighbors of the Rio , which is the new river , most polluted river in North America. And and one of the things that I never forget , and I always factor that into the work that we do , is that the promises that were made to them. They always said , well , this politician showed up and shook my hand. This other politician from Washington showed up and gave me a hug and promised me that he would fix it. And it was always these promises , promises. But we live in a country that if you don't have it on a contract , enforceable , and if it isn't signed with very clear , um , deliverables , then it doesn't exist. We can no longer afford empty promises. And so , um , the community , because for over a hundred years , as this valley has , has been in some way or other , uh , been established , uh , in many cities incorporated. We we are at a deficit of broken dreams and empty promises that have not been delivered. That's why we have roads that are in very poor condition. That's why we have industries that come in heavily pollute our water , our air , our land , uh , with toxics and disposal of of contaminated water. I mean , let's not go too far. We have probably the largest. We are the climate poster for this entire country. We have the largest inland body of water , and yet it's polluted because there was never any protections. We have no protections on our water because it's considered for agricultural use. And so people are having whether it's the city having to pay the cost of cleaning it up or whether it's a resident themselves having to clean it up. It's these bad negotiations. And so there's a lot of need for infrastructure. There's a lot of need to bring in more resources for education. Hospitals , uh , community centers. I mean , there's just so much need , and we have a lot of impoverished communities that that have been left behind. And so our goal is to really try to bring in what we call fenceline communities that are closest to these developments. Environmental justice communities watch was this entire valley suffers , you know , from environmental justice issues.
S1: So your organization is part of a new coalition calling on Imperial County to make sure the community doesn't get left behind with this growing lithium industry.
S4: Uh , it would also , uh , create local opportunities for local jobs , local contractors , and of course , a whole lot more. However , time and time again , we've had an opportunity. Even though we're Early. The fact that there isn't a lithium fully developed and supplying a large scale in market supply of lithium. Yet even though we're ahead of it , the industry and certain local officials are already indicating that it's the same plan. It's the same outdated , same inequitable plan where the same players keep winning. And in one word , I would say the exploitative plan , exploiting our resources , because a lot of those resources that are being targeted are public resources. It is public water , it is public land , it is public grants. It is public investments , uh , tax credits. So often say we are investors in this. Don't just come out here and tell us you're going to get a job. So , so , you know , go bust your rear over there and work and be happy and go home and shut up. No , we are investors. And because we are investors. We want to know what is going to be our return in that investment. Right. The industry is going to have return in their investment. We want to return in our investment. We need. We need to be treated with that level of respect that they would sit along , you know , in front of any other investor out there that is investing in getting these minerals out and being able to put them to market or be able to put them in their vehicle. We deserve that same level of respect and we're not being given. And that is what motivated the creation of this coalition to be able to protect our public patrimony , be able to create the jobs , be able to create the community benefits that we deserve. And in a fair negotiation all around. And if it can't be done voluntarily , right. We already saw SB 125 , the lithium tax , 30% of that money was supposed to go to the fence line communities , those that are closest. But they didn't. You know , we're they're full of excuses. No , no , we need to take care. Through equity , those who need it the most and those going to be at highest risk and then be able to then , uh , support , you know , anything else outside of that. But in this case , Imperial County has taken the largest share. But yet the communities and the deepest bits of disadvantage is in the county jurisdiction. It's the math isn't adding up. And so we can no longer trust it has to be documented. It has to be signed. One of our partners here says , you know , you know , fool me , fool me once. Shame on you. Fool me twice , shame on me. So we're already at at number two. So , no , this is not going to be just another , you know , empty promise. We seek renewed commitments. Uh. And if it ain't written and don't exist.
S1: There's so many lessons learned from the past. And I think what you're saying really speaks to the importance of communities being engaged when business and industry come to town. You've really got to look out for for what's in the best interest of the community. You know , a long term goal of the lithium industry is , is to manufacture batteries for electric vehicles. There's still this statewide push to move to electric powered vehicles by 2035. But Imperial County faces challenges in that area , specifically EV ownership.
S4: You know , one thing I want to be clear , we are an environmental justice organization , but we started as a farmworker serving organization , and we realize it's all the same. We're all trying to achieve one goal , which is to give community a hand up , being able to provide them that equity and that support that they need. Because there is the reality that there are those who live in privilege and they're going to be okay , but there's people who need a little bit of help because there are real barriers that do exist , whether they're social barriers , economic barriers , cultural barriers. They exist , and we're a country of immigrants. We're a country that we need to support each other. That's what we claim every time we raise the flag. So we need to be true to that. We can't just be like whenever it's convenient , right ? Whenever it aligns with a certain set of of political agenda or value. You know , this is about the people we got to be human beings. And so , um , one of the things that that we , uh , lacked here is the fact that we were among the last or the last , uh , per capita , with the least amount of chargers we've been able to deploy , uh , now 16 chargers or 32 connections , depending on how you see it , because each charger has two connections. And so we've become the largest developer of EV charging infrastructure , not because our goal was to get in the business of it , but because we knew that if we didn't build the infrastructure , we would be left out and it would just , uh , exacerbate the exploitation of our community where we would be like many communities throughout the world where there's extraction of diamonds. Extraction of petroleum , you know , extraction of other , uh , types of minerals and , and goods from communities. But yet they don't get to benefit from that. Well , we don't want to be that. There's also programs in the state , like the clean cars program that the California Air Resources Board has been financing , so that they can help disadvantaged , low income communities get into vehicles with with rebates up to $12,000. So we are coordinating with other organizations in the region to be able to get low income families into these vehicles , because we know that cost can be a deterrent. And so , you know , we're just very grateful to state California being able to put these incentives. You know , we're very , uh , and as , as I was saying , as an environmental justice organization , we don't think it's the ideal situation to extract minerals. We know a lot of Native Americans who are definitely against it. And we want to be , you know , learning from from their own experiences as well. But so that's why we we don't refer to it as a critical mineral. We refer to it as a transitional mineral because as hydrogen evolves , as hydrogen infrastructure becomes better , as other technologies , we might even be able to just get solar power and be able to store enough of it to get us through the day and through the night. Uh , technology will keep evolving. So we know that this is , you know , maybe a 40 or 50 year technology that will , you know , maybe we'll get more out of lithium and we don't have to extract anymore. Maybe we can recycle lithium. I don't know. You know , the possibilities are endless. So for us , you know , lithium is definitely a transitional mineral. Uh , and that's the reason why , you know , we know that there is not the perfect scenario right now for a a fuel source. But we know that lithium is far better for cleaner in a weight scale then fossil fuel. So for that reason , we are we are , uh , on board with this , uh , lithium , uh , extraction as a transitional mineral.
S1:
S4: I , I think there's a disconnect with where the sources we get our information , you know , what we believe , what we socialize in our communities. But it's a lot simpler than that. We are disadvantaged communities. We are at risk communities , high risk communities that need a lot of government support for the infrastructure to respond to health issues. And when you have an administration that is very top down that says cut out programs , cut off funding. It is heartbreaking to see that those who agree with that type of approach , and still find excuses today for that type of approach , are the ones that are getting hurt , are the ones that are getting deported , are the ones that are that may not get their Social Security or Medi-Cal , uh , or unemployment. I don't think they quite understand the level of risk that we're facing right now. We've seen it in other similar administrations. Not as bad as and so , um , directly attacking , you know , the low income families. Uh , but that's what it is. Uh , and I don't I don't think that it's unfortunate. I'm not really sure the country really understands the depth of threat that they are facing , because people who have more resources , people who are better off. Uh , yes. You know what ? They may also be a threat , you know , lose their savings , but they may also have a greater chance to adapting. People who have nothing and you take the little that they get. You basically put them on the streets at that point. And and I can say that right now , but I'm pretty sure there's going to be a lot of disagreement for people who are the target of this administration to put them in the streets , and there's nothing I can do about it. That means it's just generation after generation of misinformation , of of lack of education , of lack of engagement. And , you know , it's we have a long way to go to be able to help our community. I don't blame them at all. They are victims of the system that has left them out. And while there have been administrations that have tried or leveled the playing field , uh , try to provide more equity , inclusion , and , you know , it just it hasn't been enough to reverse hundreds of years of of racism , of economic inequality. Of so many things that have been deliberately , by design , impoverish this country. Absolutely.
S1: Absolutely. I've been speaking with Luis Olmedo , executive director of the environmental justice group Comité del Valle. Luis , thank you so much.
S4: Thank you for having me. It's been a pleasure.
S1: That's our show for today. I'm your host , Jade Hindman. Thanks for tuning in to Midday Edition. Be sure to have a great day on purpose , everyone.
