The Mexican President, Andres Manuel Lopez Obrador said recently that his administration will issue a call for US and Canadian firms to participate in the country’s incipient lithium market.
Mexico to go into lithium mining
Mexico is one of the most competitive countries in the world for investment due to its macroeconomic and political stability, large domestic market, and it’s ability to produce advanced manufacturing products.
Mexico is now planning on going into lithium mining and is urging US and Canadian firms to participate in their market.
Although Mexico does not yet have commercial lithium production, it is close to a dozen foreign companies that hold contracts to explore potential deposits.
The President plans for the lithium
The Mexican president nationalized Mexico‘s lithium deposits earlier this year, expecting to cash in on surging demand for the metal.
The President said lithium will be used for objectives such as the production of electric car batteries, but only factories established in Sonora will be able to take advantage of the mineral, and they do not want lithium to be taken out of Sonora.
So the government plans to exploit the mineral in the northern Mexican state (Sonora) only. The role of foreign corporations will be based on building infrastructure and state entities will hold the majority stakes in the projects.
The president has urged the private sector to work with the new state miner, stating that the size of the investment needed means the government requires partners. However, professional analysts had argue that companies are more inclined to focus near-term investments in Chile or Argentina’s sprawling salt flats, where enterprises are more formal and policies more market-friendly.
Although Mexico does not currently produce lithium, the finance ministry estimated the value of Sonora’s lithium reserves at $600 billion.
Mexico is ready to go into lithium mining and has urged firms to participate in the market. The progress on this is yet to be seen.
Doing business in Mexico is highly recommended due to the country’s several advantages. To enter the Mexican market for your investment services or company setup, let’s go ahead and contact your Damalion expert now.
