I think that logically, it doesn't make sense for Maine to change its laws to allow this to move forward. It's worth $1.5B and there are about 1.5M people in Maine. That's $1,000 per resident. Given that there are costs to extract the metal from the ground, let's say that 20% of that $1.5B could be profit (which I'm guessing is a very high estimate). That means $200 per Maine resident. Given that Maine doesn't own the land/mineral rights, let's say they can put a 30% tax on those profits. $60 per resident.
Realistically, $1.5B worth of lithium is a tiny amount of value for a US state. If I were Maine, I'd say no at $1.5B. You're probably going to get less than $60 per Maine resident - and that's a one-off $60, not even an annual $60.
The article keeps talking about how we need lithium. Ultimately, we don't seem to need it that much given how cheap it is. If I were Maine, I'd say "not now". If Lithium prices go up 100-1,000x in the future, then reevaluate. $6,000-$60,000 per Maine resident might be a useful amount of money. $60 isn't.
At current prices, any environmental damage is likely to cost more than the taxes on the profits would cover. $90M in taxes (30% of a 20% profit margin) won't clean up a lot.
I'm not saying that it's a global optimum for Maine to leave this lithium in the earth. I'm just noting that there isn't a lot of incentive for Maine to extract it. The article talks about other countries with less strict labor and environmental rules. That is true, but why should Maine risk its environment for such little money?
Why should Maine risk environmental damage for $60 per person? $90M in tax revenue is nothing compared to the cost to clean up environmental disasters. It's costing over $6M to clean up a single park in my town, never mind the type of environmental damage that might be caused by mining 11M tons of lithium. It seems like it would be foolish for Maine to alter the laws to allow the mining to take place at current prices.
Realistically, $1.5B worth of lithium is a tiny amount of value for a US state. If I were Maine, I'd say no at $1.5B. You're probably going to get less than $60 per Maine resident - and that's a one-off $60, not even an annual $60.
The article keeps talking about how we need lithium. Ultimately, we don't seem to need it that much given how cheap it is. If I were Maine, I'd say "not now". If Lithium prices go up 100-1,000x in the future, then reevaluate. $6,000-$60,000 per Maine resident might be a useful amount of money. $60 isn't.
At current prices, any environmental damage is likely to cost more than the taxes on the profits would cover. $90M in taxes (30% of a 20% profit margin) won't clean up a lot.
I'm not saying that it's a global optimum for Maine to leave this lithium in the earth. I'm just noting that there isn't a lot of incentive for Maine to extract it. The article talks about other countries with less strict labor and environmental rules. That is true, but why should Maine risk its environment for such little money?
Why should Maine risk environmental damage for $60 per person? $90M in tax revenue is nothing compared to the cost to clean up environmental disasters. It's costing over $6M to clean up a single park in my town, never mind the type of environmental damage that might be caused by mining 11M tons of lithium. It seems like it would be foolish for Maine to alter the laws to allow the mining to take place at current prices.