California Court of Appeal Orders Imperial County to Correct Major Environmental Deficiencies in Hell's Kitchen Lithium Project Approval

California Court of Appeal Orders Imperial County to Correct Major Environmental Deficiencies in Hell's Kitchen Lithium Project Approval

Imperial Valley, CA - August 11, 2026 - Comite Civico del Valle (CCV) and Earthworks welcomed a significant California Court of Appeal decision requiring Imperial County to correct major deficiencies in its environmental review of Controlled Thermal Resources' (CTR) Hell's Kitchen geothermal and lithium project.

The Court of Appeal reversed key elements of the Imperial County Superior Court's previous ruling and issued a landmark decision directing Imperial County to bring the project's Environmental Impact Report into compliance with the California Environmental Quality Act (CEQA). CCV and Earthworks filed suit urging that CTR and Imperial County follow the law in 2024 and appealed the case in 2025.

The court ruled that Imperial County’s environmental review failed in several critical areas. Specifically, the court found:

• The record did not contain substantial evidence demonstrating that sufficient water would be available to operate the project over its asserted 50 year lifespan.
• The environmental impact report failed to adequately analyze or support proposed mitigation measures for future reductions in Colorado River water supplies.
• The environmental impact report failed to sufficiently evaluate and respond to evidence that redirecting water from agricultural uses to the project could reduce flows to the Salton Sea and worsen air quality through additional exposed playa.

The court emphasized that the project’s claimed 50 year water supply was not supported by substantial evidence, concluding that this deficiency prevented informed public decision-making on one of Imperial Valley’s most critical natural resources.

The Hell’s Kitchen project is expected to require approximately 6,500 acre-feet of water annually from the Imperial Irrigation District. The court held that Imperial County’s administrative record failed to demonstrate that this water supply would be available over the project’s asserted operating life and further found that the County failed to adequately evaluate how the project would respond if Colorado River supplies are reduced in the future.

The Court also recognized that reduced agricultural drainage reaching the Salton Sea could contribute to worsening air quality in nearby communities and held that Imperial County failed to sufficiently address concerns regarding those impacts.

“This decision is not against lithium development,” said Luis Olmedo, CCV’s Executive Director. “It is about getting lithium development right. Imperial Valley can lead the clean energy transition, while also protecting our water resources, public health, and communities.”

Olmedo further added that, “Today’s decision reinforces a simple principle. Projects of this scale must be supported by credible evidence, not assumptions, about long-term water availability, enforceable mitigation, and impacts to surrounding communities. The transition to clean energy should never come at the expense of our local environment and the health of Imperial Valley families.”

CTR proposes to use direct lithium extraction (DLE). While some forms of DLE have operated commercially for years, many of the newer DLE technologies proposed for large-scale projects remain in the early stages of commercial deployment, making careful environmental review and independent evaluation essential.

“When companies come into a community to make a profit, they need to respect the people who live there,” said Jared Naimark, western mining senior manager at Earthworks, an international environmental justice organization. “One way to show that respect is to follow the law from the start instead of cutting corners.”

The court’s decision also found that Imperial County did not need to take additional action to consult with the California Indian Tribes whose historic places and sacred sites may be affected by the project.

“This decision makes it even more important for Imperial County to have a strong plan for its future,” said Jared Naimark, western senior mining manager at Earthworks. “Every company has a duty to respect sacred places where it does business. Residents still have a chance to make sure that happens here.”

The Hell's Kitchen project is just one of what could become many lithium recovery projects in Imperial County. One of the world's largest known lithium resources lies beneath the Salton Sea region, and several companies have announced plans to develop lithium recovery facilities. At the same time, Imperial County is considering the Lithium Valley Specific Plan (LVSP), which would establish an environmental review intended to streamline the approval of future projects.

As this Court of Appeal decision demonstrates, careful environmental review remains essential to ensure that future development is based on credible science, fully evaluates impacts to water resources, air quality, and surrounding communities, and includes meaningful mitigation measures. The public has had an opportunity to review and comment on the LVSP and is awaiting Imperial County’s final proposed plan.

“This victory belongs first and foremost to the residents of Imperial Valley who have spent years speaking up for clean air, responsible water management, and a healthier future for our communities. Today's decision recognizes that community voices matter and deserve honest environmental review before projects of this scale move forward. We at CCV want to thank the community for their steadfast support and belief in their rights as a community to speak up for the health and well-being of Imperial Valley families.”