Export variable - React

I have a component called Component1 in which I have the following code:

import React, { useState } from "react";
import Popover from "material-ui-popup-state/HoverPopover";
import Fab from "@material-ui/core/Fab";
import {
  usePopupState,
  bindHover,
  bindPopover
} from "material-ui-popup-state/hooks";
import PaletteIcon from "@material-ui/icons/Palette";
import Colors from "./Colors";

const DEFAULT_COLOR = "red";
const COLORS = [/*list of colors*/];

const Component1 = ({ classes }) => {
  const popupState = usePopupState({
    variant: "popover",
    popupId: "demoPopover"
  });
  const [selectedColor, setSelectedColor] = useState(DEFAULT_COLOR);

  return (
    <div className="box" style={{ backgroundColor: selectedColor }}>
      <Fab variant="extended" {...bindHover(popupState)}>
        <PaletteIcon />
      </Fab>
      <Popover
      >
        <div className="color-palette">
          {COLORS.map((color) => (
            <Colors
              key={color}
              selected={selectedColor === color}
              onClick={setSelectedColor}
              color={color}
            />
          ))}
        </div>
      </Popover>
    </div>
  );
};

export default Component1;

This component is imported in Component2 where the code is:

import React from "react";
import Component1 from "./Component1";
import Fab from "@material-ui/core/Fab";
import DeleteIcon from "@material-ui/icons/Delete";

function Component2(props) {
  function handleClick() {
    props.onDelete(props.id);
  }

  return (
    <div className="note" style={{ backgroundColor: "selectedColor" }}>
      <h1>{props.title}</h1>
      <p>{props.content}</p>
      <Fab onClick={handleClick}>
        <DeleteIcon fontSize="small" />
      </Fab>
      <HoverPopover />
    </div>
  );
}

export default Component2;

In component2 I need to use the const selectedColor for styling purpose for div with class="note". However the issue is when I select colors from COLORS list the background-color of div with class="note" is not changing. I tried many options but I don't understand how to do it correctly. Please tell me how to do it right.