Fatal Error: Economic growth is infeasible in green energy California.

February 6th, 2026

Trona California (Death Valley region)

“Renewable energies, due to their volatility and to maintain grid stability and supply security, require storage and reserve capacities that cannot be economically provided without massively burdening or partially collapsing the economy.” – Thomas Kolbe

Searles Valley Minerals is a case where the crisis of green energy flies in the face of economic reality, and it’s just one reason why both the State of California and Germany are collapsing before our very eyes. This week, the Daily Independent newspaper in Ridgecrest California broke the news that a historic mining company is laying off over half of its workforce.

The history of Searles Valley Minerals in California is deeply intertwined with the region’s mining heritage. The company has its roots in the 1860s when John Wemple Searles discovered borax in the dry Searles Lakebed. This discovery led to the establishment of the San Bernardino Borax Mining Company, which began production in 1873. Over the years, the company has evolved, with significant milestones including the founding of the American Trona Company in 1913 and the completion of the Trona Railway in 1914.

Searles Valley Minerals announces layoffs, confirms 300 to be let go (The Daily Independent)

By Aaron Crutchfield acrutchfield@ridgecrestca.com, Feb 4, 2026 Updated 22 hrs ago

Searles Valley Minerals officially announced a round of layoffs on Wednesday, greatly slashing its operations in the Trona area. Although the release gave no specifics, spokeswoman Tracy Leach confirmed that about 300 employees will be let go out of 540 total employees. She also confirmed the Argus plant will be mothballed and layoffs will also affect the Trona plant. 

Why is Searles laying off over half its workforce? California and China

We will put it clearly; Doing business in California has become infeasible due to high energy costs and a crushing regulatory and tax burden. The Press Release from the CEO Dennis Cruise makes it painfully clear:

The workforce reduction is tied to SVM’s soda ash and boric acid plants, which have faced sustained challenges from global competition and rising operating costs. Lower cost soda ash overseas, particularly in China, have significantly altered global markets, with products entering at prices that California based producers cannot reasonably match.

At the same time, California’s operating environment has placed additional strain on soda ash and boric acid production. Energy costs now account for approximately half of SVM’s soda ash production expenses, with energy prices far exceeding those faced by competitors in other states and countries. Ongoing regulatory compliance costs, fees, and taxes have further increased the cost of doing business, making it increasingly difficult for soda ash operations in California to remain economically viable. (SVM Press Release)

Searles Valley Minerals – Historic 20 mule teams – 150 years of Mining

Boron has been designated as a strategic and critical mineral by the Trump Administration, and Searles will likely continue operating indefinitely, albeit with half of its workforce.

Looking forward, SVM remains focused on the production of boron, which was recently added to the U.S. Geological Survey 2025 List of Critical Minerals. This designation reflects boron’s importance to the United States economy and national security. SVM produces sodium borate and other specialty borate products from solution mined brines in Searles Valley and is one of only two companies in the United States that currently produce boron products. (SVM Press Release)

“Searles Valley Minerals has been part of this region for more than 150 years,” Cruise said. “While this announcement is painful, we remain committed to operating responsibly and investing in the minerals that will play a critical role in America’s future.” (SVM Press Release)

Implications for the City of Ridgecrest and the Indian Wells Valley Groundwater Authority

The CEO of Searles didn’t say it, but the policies and economic damages caused by California’s Sustainable Groundwater Management Act called “SGMA” are yet another reason why Ridgecrest won’t grow and why Searles can’t compete in the global economy. Besides, SGMA undermines private property and water rights, and it has nothing to do with “sustainability”. Searles has likely spent millions on attorney’s fees and other expenses fighting to defend its water rights.

The jobs lost at Searles won’t be coming back anytime soon, and the City of Ridgecrest, which is the bedroom community for many of Searles’ workforce, will incur a loss of nearly 1,000 residents.

Letter: Settlement not a victory, but capitulation by city, IWVGA

The Daily Independent published a Letter in Friday’s edition which brings home the point that the lawsuit filed by Searles against the IWV Groundwater Authority wasn’t a victory for the Authority but a capitulation to Searles’ clearly superior water rights in the valley.

Letter to the Editor of The Daily Independent:

The recent settlement in the lawsuit by Searles Valley Minerals against the Indian Wells Valley Groundwater Authority wasn’t a victory for the GA but a capitulation by the city of Ridgecrest and the GA. Searles gave up nothing, they don’t have to pay the GA’s “Replenishment Fee,” and they agreed to work with the city, at their option, to buy treated, recycled wastewater from the city’s yet-to-be-built wastewater treatment facility.

Not only that, Searles didn’t commit to withdrawing from the comprehensive adjudication lawsuit called Mojave Pistachios vs. The Indian Wells Valley Groundwater Authority. They will protect their water rights in doing so. The only thing that Searles agreed to was that they would no longer challenge the science behind the Groundwater Sustainability Plan for the IWV.

As reported by the Daily Independent, Searles Valley Minerals has just announced layoffs. In a letter dated February 3rd viewed by the DI, CEO Dennis Cruise said, “shortly, we will be announcing a workforce reduction affecting our soda ash and boric acid operations”. The number of people to be laid off wasn’t disclosed. The letter cites increasing competition from lower cost soda ash mining companies overseas, and the poor economic and energy costs of operating in California.

According to Cruise’s letter, energy costs alone represent half of soda ash and boric acid production expenses. The implications of this announcement can’t be overstated. There’s no way that Searles can operate efficiently or competitively in California. Searles will likely cut back or cease mining operations entirely in at least one or more of their three facilities at Westend, Trona and Argus, and they will ultimately lay off a substantial number of their 700 employees or shut down mining operations entirely, leaving only a facility maintenance crew on the ground.

This announcement comes on the heels of cutbacks at NAWS China Lake. The base is shrinking its civilian workforce due to a hiring freeze, and while we don’t know by how many, based on comments by Rear Adm. Hash at the China Lake Alliance meeting a few weeks ago, we can estimate a workforce reduction of 400 occurred in 2025 with more to come in 2026.

As for the City of Ridgecrest and the Indian Wells Valley Groundwater Authority, the likelihood that the $400 million imported water pipeline called AVEK will ever be built just went to zero.

Publisher’s Note: It’s a shame that the people of Ridgecrest have to put up with people like Ron Strand and a drama queen like Councilman Kyle Blades. He’s a perfect example of why Ridgecrest needs term limits and why voters approved the current term limit law in the first place, by a vote of 75% in favor. There is no reason to change Ridgecrest’s term limit law, and besides, a vote to keep Blades on the council by changing the term limit law is a vote to build an unnecessary $400 million pipeline.

Fatal Error: Strategic Minerals and Energy Resiliency

The following article drives home the point that California’s green energy push has created the conditions for an economic collapse in a state that has the highest energy costs and the 49th worst business conditions in the nation.

Irony of History – Excerpt from “Germany Faces Gas Shortage Crisis: Industry Demands Strategic Reserve”

By Thomas Kolbe (via Zerohedge.com) To read the full article, click on the link below.

https://www.zerohedge.com/markets/germany-faces-gas-shortage-crisis-industry-demands-strategic-reserve

The emerging necessity of a national gas reserve carries two ironies.

First, it is a belated admission of the complete failure of the energy transition. Renewable energies, due to their volatility and to maintain grid stability and supply security, require storage and reserve capacities that cannot be economically provided without massively burdening or partially collapsing the economy.

Second, it is precisely the declared arch-enemy of German policy, US President Donald Trump, who these days is calling not only for an existing strategic oil reserve but also for the creation of further national reserves. Washington intends to invest around twelve billion dollars to stockpile metals such as lithium, rare earths, nickel, and cobalt, thereby strategically reducing dependence on China and other raw material suppliers.

The terms “national” and “reserve” in the energy policy context are particularly offensive to the left-green milieu. There, people are unaccustomed to yielding to reality and recognizing that conservative thinking in matters of supply security, preparedness, and societal resilience is superior in every respect—including as a socio-political concept.

In the USA, supply security and strategic resilience sit prominently on the political agenda alongside energy market deregulation. In Germany, however, remarkable consistency is applied to stabilizing a green crony economy, whose economic viability is increasingly eroding.

German households will experience the consequences of this fatal error very concretely in their accounts over the coming weeks and months.

Now you can see the sad consequences right there in Ridgecrest, California, a city with only 28,000 residents.

Background on Soda Ash (Borax.com)

Soda ash, also known as sodium carbonate, is a simple, natural product that has been used for over 5,000 years. It is a safe and essential raw material in a variety of industrial processes, from the manufacture of glass to detergents, and is the 10th most consumed inorganic compound in the world. The largest application for soda ash is in the making of all forms of glass, whether it is in the production of containers, fiberglass insulation, or flat glass for the housing, commercial building, and automotive industries.

History of Searles Valley Minerals in California

The history of Searles Valley Minerals in California is deeply intertwined with the region’s mining heritage. The company has its roots in the 1860s when John Wemple Searles discovered borax in the dry Searles Lakebed. This discovery led to the establishment of the San Bernardino Borax Mining Company, which began production in 1873. Over the years, the company has evolved, with significant milestones including the founding of the American Trona Company in 1913 and the completion of the Trona Railway in 1914.

In 1913, the Trona Railway was built to connect the mineral-rich Searles Valley with the national railway system at Searles Station. This construction effectively ended the dependence on wagon-based transportation in the area. The railway facilitated the easy transport of large quantities of minerals like borax, soda ash, and potash, directly from the extraction and chemical processing facilities situated in Trona.

References:

https://www.american-rails.com/trona.html

https://mojavedesert.net/railroads/trona-railway