LAS VEGAS (KTNV) — Gov. Joe Lombardo is urging President Donald Trump to reconsider and remove tariffs on lithium, citing potential negative impacts on Nevada's mining industry.
In a letter to the president this week, Lombardo noted that, as the home of North America's largest known lithium deposits, Nevada "has already become a hub for energy technology and remains committed to attracting and driving continued growth in this space."
As sweeping tariffs stir up trade war tensions, economists have already raised alarm bells about the potential impact on Southern Nevada's billion-dollar tourism industry.
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Trump has justified increasing tariffs on imported goods in part by claiming they are designed to spur U.S. manufacturing. That's something Lombardo acknowledged in his letter, expressing "sincere appreciation for your efforts to return manufacturing jobs back to United States soil."
"The ingenuity of American manufacturers, combined with the dedication and talent of their workforce, has long driven the United States to its position as the world's leading economy," Lombardo added.
However, Lombardo called the president's attention to a gap in American manufacturing, telling the president "there is no domestic technology capable of refining lithium to the standards required for manufacturing while also meeting our country's environmental regulations. As a result, all manufacturing-grade lithium is imported from China."
"Moreover, U.S. companies — including those in Nevada — cannot absorb the costs of newly imposed tariffs, rendering them increasingly uncompetitive in the global market," he wrote.
You can read Lombardo's letter here:
Governor Lombardo Letter on Energy_4.14.25 by aroberts.news on Scribd
Lithium is used in the production of batteries for rechargeable electronics and electric vehicles, and as of 2023, more than 75% of the world's lithium-ion battery cells come from China.
Trump previously announced a 90-day pause on most reciprocal tariffs with other countries, with the exception of China, which faces an increased effective tariff rate of 145%. However, since then, the president announced exemptions for some imports, including smartphones, computers and certain semiconductor chips.
When it comes to lithium-ion batteries, additional existing and projected tariffs come into play. According to the MIT Technology Review, lithium-ion batteries from China could be subject to a tariff of 82% in 2026, or 132% if you factor in Trump's 125% retaliatory tariff.
"Although U.S. battery makers could theoretically stand to benefit, there are a limited number of U.S.-based factories," writes the MIT Technology Review's Casey Crownhart. "And most of those factories are still purchasing components from China that will be subject to tariffs, because it's hard to overstate just how dominant China is in battery supply chains."
In his letter to the president, Lombardo concludes that "the current environment poses a serious risk to jobs in Nevada and across the country."
"Your timely attention to this issue is deeply appreciated," he stated. "Removing the tariffs on lithium will help secure American jobs, strengthen our economy, and support our path toward energy independence."
