A Senate committee has killed a bill that would tax one of the world’s most in-demand minerals—lithium.
The element is a key component in electric car batteries and energy storage. It’s classified as a critical mineral by the United States government.
There are thousands of acres of lithium mining claims in the Black Hills. Many claims have come in recent years. The state taxes the element similar to gravel and sand.
Opponents of the bill included the state Department of Revenue. They say the bill did not properly address how to tax the substance and determine its value.
Lithium is located inside other rock formations and can take different forms.
There’s currently one lithium mining operation in the Black Hills and it's less than five acres. Mining experts say it takes a while before a mine claim turns into an active mine.
The Senate Taxation Committee voted down House Bill 1072 Friday.
Republican Rep. Kirk Chaffee is the prime sponsor of the failed legislation. He said he will work with mining officials and the Department of Revenue on a lithium severance tax bill for next year.
