Mexican Public-Private Lithium Company to Be Located in Sonora

On Wednesday, Mexico's President Andres Manuel Lopez Obrador (AMLO) announced that the new state-controlled lithium company will be open to private investment and will be installed in the state of Sonora, bordering the United States.

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"We are developing a plan for the generation of renewable, clean energy and also for the production of lithium batteries to boost the automotive industry in Sonora," he said.

The Mexican plan has already begun with the creation of a solar power generation plant in Sonora, which will produce 1,000 megawatts. Two or three additional plants will also be installed to generate a transmission line to Baja California.

"This will allow the entire country to be interconnected," AMLO said, adding that the "Lithium for Mexico" company (LitioMx) will be directed by Pablo Taddei, who is pursuing a doctorate in environmental health at Harvard University.

In April, Mexico reformed its Mining Law to declare lithium a mineral of public utility whose exploitation will be an exclusive power of the State through a new public institution.

Currently, this Latin American country has the world's largest lithium deposit in Sonora, which places it in tenth place of 23 countries with proven mineral reserves. Lopez Obrador pointed out that LitioMx will depend on the Energy Ministry, although it will be a company like the Federal Electricity Commission and Petroleos Mexicanos (Pemex).

AMLO mentioned that his country's plan has already been discussed with the administration of President Joe Biden, who is interested in lithim production because his goal is to migrate to electric vehicles in 2035. He recalled that for the exploitation of this mineral, Mexico has received advice from Bolivia, which already has experience with lithium.

“They are also carrying out agreements with countries and foreign governments for the exploitation of lithium. They are bidding with some German, Chinese, and American companies for this strategic mineral, which is a basic input for batteries."