US Launches Geothermal Lithium Extraction Project

The United States is planning to extract lithium in the Salton Sea area, near the border with Mexico, using geothermal energy. This approach aims to make lithium extraction more sustainable. The initial investment for this project is US$1 billion, with a total cost of US$50,000/t of lithium extracted in the short term. 

According to the University of California Riverside, the Salton Sea could contain between 1Mt and 5Mt of lithium, with the potential to produce between 5Mt and 32Mt of lithium carbonate. The project relies on existing geothermal resources and 11 power plants in the region. Companies such as BHE Renewables, EnergySource, and Controlled Thermal Resources (CTR) are developing a method to extract lithium from brine in a clean way, avoiding the high water usage and pollution associated with traditional lithium extraction processes.

In Mexico, PEMEX is considering entering the lithium mining sector in partnership with the state-owned company LitioMx. This move is seen as a strategy to diversify its business portfolio and generate new revenue streams, as envisioned by Mexico's president-elect, Claudia Sheinbaum. Sheinbaum pointed out that this initiative aligns with trends in other countries where oil companies are already venturing into the lithium sector. She believes that this would provide PEMEX with additional opportunities for extraction, development, and profits beyond oil and natural gas. She also mentioned that she is currently discussing the matter with Luz Elena González, who is slated to be the next Minister of Energy.

As for technology, In July 2023, President López Obrador announced that CONAHCYT had begun working on a method to separate clay from lithium in Sonora, stating it was a technology previously only held by the Chinese, and that CONAHCYT had made 95% progress. Sheinbaum has proposed for IMF to take the lead in this but experts like Sergio Correa, an Independent professional, suggested that the task might be more suitable for the Institute of Geology of UNAM, as it has the National Laboratory of Geochemistry and Mineralogy, which specializes in these studies. 

Geothermal Developments in Mexico
Yuri Abreu, Development Manager, Xcalibur Smart Mapping, mentioned in an interview with MBN that Mexico is a great example of untapped potential in geothermal energy. Despite being a clean and efficient energy source, it is largely overlooked in Latin America due to a lack of investment and understanding. 

Mexico has the geological features to be a leader in geothermal energy in the region. While the country has made some advances in this area, more needs to be done. However, Mexico faces economic and legal challenges that deter companies from investing in geothermal projects.

In the past six years, Mexico has offered many concessions for geothermal exploration but there has been limited interest from companies, which could be due to economic reasons or uncertainties related to prices and returns on investment. Despite having a well-equipped Mexican Geological Service (SGM), as well as experts in the field, the country needs to address its challenges to attract more investment and develop its geothermal potential. Mexico also has potential in areas such as natural hydrogen, which is gaining importance in the energy transition. With the right policies and investments, Mexico could become a leader in geothermal and other clean energy alternatives, mentions Abreu.