Water flows through a canal system in Calipatria on July 23, 2026. (Philip Salata/inewsource)

A contested lithium extraction facility in Imperial County was dealt a setback in court Tuesday.

The California Fourth Appellate District said that Imperial County officials unlawfully approved Controlled Thermal Resources’ Hell’s Kitchen project and asked a lower court to overturn its earlier ruling in favor of the project.

The appeals court said there was insufficient evidence that the company had secured water for its 50-year life span and that an environmental impact report didn’t address the impact of water use on air quality in the area just east of the Salton Sea that the county has branded “Lithium Valley.” 

The ruling, written by Associate Justice Julia Kelety, also said that the environmental review did not adequately address possible future mandated water supply reductions from the Colorado River.

Kelety opened her ruling with a quote from a 1918 history of the region befitting the age-old concern over water demand in the arid southwest: “The Imperial Valley: ‘Its fruitful soil was caressed by the wasting water of an unregarded river and blossomed in perennial beauty.’”

It wasn’t a total victory for the two environmental organizations that brought the appeal. Kelety dismissed the claim by Comite Civico del Valle and Earthworks that the county’s tribal consultations were inadequate.

In a statement, the county said it remains committed to the project and is “consulting with legal counsel to fully evaluate the ruling and any potential next steps.”

The ruling comes as the county is processing comments on the Lithium Valley Specific Plan which would designate an area off the southeast corner of the Salton Sea as a hub for lithium extraction, battery making and data centers. 

Many of the comments contain similar concerns over water analysis.

Controlled Thermal Resources did not respond to a request for comment prior to publication Tuesday night. 

Jared Naimark, the Western Mining Senior Manager at Earthworks celebrated the ruling.

“When companies come into a community to make a profit, they need to respect the people who live there,” he said.

“One way to show that respect is to follow the law from the start instead of cutting corners. This decision makes it even more important for Imperial County to have a strong plan for its future.”

Philip Salata is an investigative reporter and multimedia journalist covering the environment, energy and public health in San Diego and Imperial counties. He joined us in 2023. His work focuses on community impacts of the push toward the green economy and social/cultural issues in the border region...