Mexico accelerates nationalization of lithium deposits, excludes foreign companies

(MENAFN) Mexico's President, Andres Manuel Lopez Obrador, has ordered the nationalization of the country's lithium reserves to be expedited, effectively banning foreign companies from mining the valuable mineral. In April last year, the transfer of lithium reserves to Mexico's energy ministry was ordered, along with the creation of a state-run company called Litio para Mexico, or Lithium for Mexico. The move came as part of an ambitious program called Plan Sonora, which aimed to exploit the country's lithium deposits in the state of Sonora. The district, which borders the United States, contains Mexico's largest lithium deposits, and President Obrador designated 2,500 square kilometers in the region as a national lithium mining zone.

President Obrador has promised to review contracts with foreign companies that were exploring potential lithium deposits in Mexico, and he has now issued a decree ordering the energy ministry to carry out the nationalization process. This latest order comes after the Mexican authorities approved a bill in April last year to nationalize lithium mining and extraction, granting exclusive rights to the state-run company, Lithium for Mexico, which was established earlier that year.

Lithium is a valuable mineral used in the production of various rechargeable electronic devices, including smartphones and car batteries. With the ban on foreign companies in place, it remains to be seen how the state-run company will handle the mining and processing of lithium reserves in Mexico. This latest move by President Obrador is part of his broader efforts to reclaim Mexico's resources from foreign companies and establish greater state control over key industries.

MENAFN20022023000045014146ID1105600100