Is California the “Saudi Arabia of lithium”? Mineral extraction companies are racing to strike lithium near the Salton Sea in California, a region that some are now calling the “Saudi Arabia of Lithium” or “Lithium Valley,” CBS News reports. CEO of lithium recovery company EnergySource Minerals Eric Spomer said that he is confident that the state is sitting on a supply of lithium that is over 300k tons a year — roughly over half of the world’s current lithium supply. According to Spomer, his company could recover enough lithium to support 7.5 mn electric vehicles a year, representing half of the total car and truck sales in the US.

Brine from the Salton Sea is the secret behind the abundance of lithium: While most lithium is extracted from rocks, or recovered from evaporation ponds, EnergySource Minerals is breaking ground on a “clean, [USD bn] facility in the next few months to extract lithium from the brine before reinjecting it underground,” CBS News writes.

REMEMBER- Lithium is a necessary component for the production of EV batteries and electronics. Several countries in the region have been doubling down on mining efforts in a bid to meet rising demand for the mineral, which is among several “green metals” considered key for the energy transition.

ALSO- China is set to unveil new policies to shield supply chains including possible subsidies for manufacturing, Bloomberg reports, citing analysts. China’s focus on protecting its supply chain comes as Washington moves to shun Beijing from advanced chip technology.

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