California Soda Ash Producer Shutting Down Plants

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Searles Valley Minerals (SVM), a major producer of soda ash and boric acid in California, is shutting down its facilities in Trona and Argus due to an inability to compete with overseas producers, particularly in China. The company cites high energy and regulatory costs in the state as additional factors behind the plant closures, which will impact around 300 employees.

Why it matters

The closure of SVM's plants represents a significant blow to California's inorganic chemical production capabilities, as the company is one of only two U.S. makers of boron products. The move also highlights the challenges domestic manufacturers face competing globally, especially in industries like soda ash where overseas producers have a significant cost advantage.

The details

SVM extracts soda ash and boric acid from Searles Lake, a dry lake in the Mojave Desert. The company says international sales account for about 60% of its business, but it cannot match the lower production costs of overseas competitors, particularly in China. In addition to the competitive pressures, SVM also points to the high energy and regulatory compliance costs in California as factors behind the decision to idle the Trona and Argus facilities.

• SVM has owned the plants since 2007 when it was acquired by Indian soda ash producer Nirma.
• The U.S. Geological Survey added boron to its list of critical minerals last year.

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