Andres Manuel Lopez Obrador said Tuesday (November 15) that his administration would appeal to American and Canadian companies to participate in the country’s nascent lithium market.
Mexico does not yet have commercial lithium production, although nearly a dozen foreign companies hold contracts to explore potential deposits.
“In any case, there must be associations of the public company with private entities and we do not want lithium to be taken out of Sonora,” he said at a regular press conference, referring to government plans to mine the ore in northern Mexico. State.
The role of foreign companies will be centered on building infrastructure, and state entities will hold the majority of shares in the projects, he added.
The lithium will be used for purposes such as the production of electric car batteries, but only factories based in Sonora will be able to take advantage of the ore, Lopez Obrador noted.
The president urged the private sector to work with the new state miner, saying the size of the investment needed means the government needs partners.
Still, analysts say companies are more likely to focus short-term investments in Chile or the vast salt flats of Argentina, where industries are more established and policies more market-friendly.
Lopez Obrador nationalized Mexico’s lithium deposits in April, hoping to take advantage of growing demand for the metal.
Although Mexico does not currently produce lithium, the Ministry of Finance has estimated the value of Sonora’s lithium reserves at $600 billion.
Source: El Financiero
Mexico Daily Post