Lithium Industry Will Move Forward: Buenrostro

Raquel Buenrostro, Minister of Economy, has affirmed that the country will continue to advance its lithium projects despite the ongoing dispute with Ganfeng Lithium. She also reiterated the Mexican government's confidence in winning the legal battle against the mining company.

In June, Ganfeng, along with its British subsidiaries Bacanora Lithium and Sonora Lithium, filed a lawsuit against the Mexican government over the cancellation of its concessions. Buenrostro dismissed the lawsuit as unfounded and expressed optimism that the government will succeed in arbitration, which could take several years. During this period, she confirmed that LitioMx will proceed with the exploration and extraction of lithium, a key resource for Mexico’s energy independence and decarbonization efforts.

Previously, Claudia Sheinbaum highlighted that Ganfeng’s inactivity in the region strengthens the likelihood of the company losing the legal dispute. “This lithium reserve rightfully belongs to the Mexican people. With the nationalization of lithium, it must be integrated into the Sonora Plan, which not only focuses on lithium extraction but also on significant regional development initiatives.”

Lithium in Mexico

Ganfeng’s Sonora Lithium project was originally scheduled to begin commercial production in 2023, officially making Mexico a lithium producer. However, political uncertainty has left the future of lithium exploration efforts in Mexico uncertain. The dispute stems from the approval of López Obrador's Mining Law in April 2022, which granted the State exclusive control of lithium exploration and production. Subsequently, López Obrador cancelled the concessions of the company, claiming that Ganfeng and its subsidiaries did not meet the required investment thresholds.  

President López Obrador previously announced that his government would seek an agreement with Ganfeng Lithium while defending Mexico's rights amid the firm's arbitration case over a disputed concession. He stated that the concessions granted were too general, as they did not specifically mention lithium extraction, a mineral the government has labeled as strategic. To date, López Obrador has not provided details on a potential agreement to resolve the dispute.

According to a US Geological Survey's 2024 report, Mexico ranks ninth in lithium reserves with 1.7Mt. Despite Mexico’s lower lithium reserves, experts suggest that with the exploitation of economically viable deposits, Mexico could emerge as a major player in lithium production. However, the country faces two challenges. First, Mexico's lithium reserves are mainly in clay formations. Second, the government has limited the participation of private companies in lithium production.