Mexico evaluating lithium nationalization proposal

Mexico’s government is continuing to evaluate proposals to nationalize lithium mining, President Andrés Manuel López Obrador (AMLO) confirmed.

An initiative presented to the senate by senator Alejandro Armenta of the ruling Morena party in November calls for the battery metal to be deemed the exclusive property of the nation, with production controlled by the state.

The aim of the move – which has been criticized by mining industry officials – is to ensure Mexico gains the maximum benefit from its lithium resources, with demand expected to surge amid an electric vehicle boom in the coming years.

The proposal is being evaluated by the economy ministry, AMLO told a press conference.

“We are going to continue reviewing what possibilities there are to carry out the nationalization... of this resource, to see that it is well managed, what potential it has, and review it,” he said.

But he signaled that any decision to expropriate lithium assets would not be taken lightly.

While Mexico is not currently a lithium producer, this stands to change in 2024, when Bacanora Lithium and Ganfeng Lithium’s US$420mn Sonora project begins production.

A number of mining companies are exploring early-stage lithium projects in the country.

“We don’t want to expropriate for the sake of it, we have not done any expropriation during my time in government,” AMLO added.

Barring expropriation, senator Armenta’s proposal is not expected to impact Sonora as the project already has concessions in place.