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Bill

Bill

A 6391

Enacts the "cobalt and lithium mining and production divestment act"

2025 Regular Session Introduced by Joe Angelino and 8 co-sponsors

Requires New York State to divest public pension and investment funds from companies mining cobalt and lithium, citing labor and environmental concerns despite tension with climate goals.

REFERRED TO GOVERNMENTAL EMPLOYEES
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Bill Summary · A 6391

Legislative bill overview

Bill A 6391 would require New York State to divest from companies engaged in cobalt and lithium mining and production operations. The bill establishes a framework for identifying, reviewing, and removing investments in these sectors from state pension funds and other publicly managed investment portfolios. This applies to direct holdings, commingled funds, and other investment vehicles controlled by the state.

Why is this important

Cobalt and lithium are critical minerals for battery manufacturing, particularly for electric vehicles and renewable energy storage—industries New York actively promotes through climate policy. This bill creates tension between the state's climate goals and labor/human rights concerns, as mining of these minerals in countries like the Democratic Republic of Congo (cobalt) and Chile/Argentina (lithium) has been linked to poor labor conditions, environmental damage, and human rights concerns. The divestment decision could significantly impact state pension fund returns and investment flexibility while signaling values-based investment priorities.

Potential points of contention

  • Financial impact: Divestment requirements may reduce investment returns or diversification options, potentially affecting retiree pension security and fund performance
  • Practical limitations: Difficulty identifying all indirect exposure to these minerals in complex investment portfolios and commingled funds could make enforcement challenging
  • Climate paradox: Restricting cobalt/lithium investments could reduce capital for battery production needed for the state's own renewable energy and EV transition goals
  • Supply chain complexity: Companies operate globally with mixed ethical records; a blanket mining sector ban may be overly broad compared to targeted standards for specific practices

Compiled from official sources — confirm details with the bill’s official record.

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