Mexico continues with plans to nationalise its future lithium production

Mexico continues with plans to nationalise its future lithium production

Mexico's Congress passed a bill to nationalise lithium, tightening control over its domestic supply chain.  

Blue View

On Monday, the lower house of Mexico’s Congress debated and approved a bill submitted by President Andres Manuel Lopez Obrador the previous day.  Then, on Tuesday, the Senate passed the lithium amendment to the country's mining law by a large majority.  All lithium contracts are now to be reviewed.

There is no commercial production of lithium in Mexico, but a number of companies have secured rights to explore Mexican deposits, including Bacanora Lithium, which is focused on building a 35ktpy battery-grade lithium operation in Sonora, in partnership Ganfeng Lithium. 

The bill has attracted some criticism, on the grounds that it may prevent or limit further investment into Mexican mining projects.  Also, this week, López Obrador suffered one of the most significant defeats of his term after legislators rejected his proposed overhaul of Mexico’s electricity sector.  Critics said the reforms would have reduced investment and set back renewable energy production.