Public contracts: California Lithium Economy Act.
The bill would require that by January 1, 2025, contractors involved in electric vehicle projects disclose the origins of any lithium. Furthermore, by January 1, 2035, it stipulates that at least 35% of the lithium used in these contracts must be produced in California. This legislative move is in line with California's broader environmental goals and aims to reduce reliance on foreign lithium imports, thereby fostering local production.
Assembly Bill 1397, known as the California Lithium Economy Act, aims to enhance California's public contracting practices by incorporating new requirements related to lithium, a critical component in electric vehicle batteries. This bill amends Section 3501 and introduces Section 3503.5 to the Public Contract Code. It establishes definitions for 'eligible materials', which now include lithium, and mandates that successful bidders for public contracts involving electric vehicles must disclose the sources of lithium used in their batteries.
Supporters of the bill argue that it not only enhances transparency in supply chains but also creates high-quality, green jobs in the state, particularly in regions like the Salton Sea Known Geothermal Resource Area, which boasts significant lithium deposits. Nevertheless, there could be contention regarding the feasibility of meeting the 35% production target within the specified timeframe and the potential impacts this may have on contractors looking for cost-effective sourcing options. Critics might also point to challenges in infrastructure and resource allocation for developing local lithium production capacities.