2025 PEF Funding for LitioMX Remains Insufficient

The 2025 Economic Package (PEF) allocates MX$12.9 million to LitioMX, representing a 31.6% increase compared to 2024. However, the 2025 Economic Package does not allocate funding for any active lithium development projects, with the resources designated exclusively for administrative expenses.

In 2024, LitioMX initially received MX$9.8 million to cover payroll expenses for five authorized permanent senior management positions. “Subsequently, additional resources were allocated to fund nine temporary positions and other payroll-related expenses, increasing the modified annual budget to MX$14.3 million as of June 2024,” the agency reported.

As of now, no timeline has been established for the start of lithium production, following the government’s decision to nationalize the metal and suspend projects, such as the Sonora Lithium project. However, strategic plans are being formulated. Víctor Rodríguez, CEO, PEMEX, announced that lithium-related projects will be developed in collaboration with CFE, employing a model that integrates social and private collaborations.

A significant challenge to the success of Mexico's lithium industry, according to Oscar Ocampo, Energy and Environment Coordinator, Mexican Institute for Competitiveness (IMCO), is the limited public funding allocated to its development. While funding has increased for 2025, experts argue that the current allocation remains inadequate for an initiativethat may require billions of dollars in investment.

Another significant challenge is the still limited role of the private sector in Mexico’s lithium supply chain. This issue was exacerbated by the constitutional reform promoted by Claudia Sheinbaum, which prohibits granting lithium concessions and establishes a state monopoly under Art. 27. Furthermore, the potential ban on open-pit mining, a measure that is not yet clear if it is supported by Sheinbaum, represents a critical threat to the sector.

“It is not feasible to exploit lithium without open-pit mining, as these deposits consist of disseminated lithium. In contrast, minerals like silver and gold are concentrated in veins—fractures filled with metal oxides that allow for underground extraction,” explains Luca Ferrari, Academic, UNAM.

While the country faces significant challenges in advancing the lithium industry, Sheinbaum is confident that lithium production will commence during her administration and will help advance the national economy. "I believe the Sonora Plan is one of the most visionary projects, positioning Sonora at the forefront of national development. First, it focuses on decarbonizing the economy by enhancing solar energy. Second, it proposes an industrial policy linked to electromobility," she explained. “We will make Mexico a scientific and innovation powerhouse. By prioritizing local technological development and investing in research, Mexico has the opportunity to effectively harness its rich lithium resources.”