LitioMX Will Control All Lithium Projects

LitioMX announced that it will promote future lithium extraction joint ventures between the state-owned company and private companies. However, private players will have to cede majority participation to the government. In addition, tax exemptions could be granted to boost the start-up of these projects.

Pablo Taddei, CEO, LitioMx, pointed out that private companies will be able to join the Mexican lithium industry by partnering with the company, created in 2022 by President López Obrador to oversee Mexico’s nascent lithium industry. However, the government will still exercise control over the projects. "There is no doubt that the Mexican government should have control in a strategic association with private companies," said Taddei. As for the percentage that the government wants to own of each project, Taddei stressed this will depend on each deposit.

In addition, Taddei said the Mexican government is preparing to offer tax incentives to attract more investors to the lithium industry: "They must be attractive partnerships both for them and for us. We are open to giving incentives so that it is a win-win relationship." No further information was given on tax incentives or whether there would be other incentives.

Taddei noted that LithiumMX will also hold a stake in all technology patents derived from lithium projects in Mexico. He did not say when the company is expected to launch its first project but said that Mexico will certainly benefit from the global lithium boom.

What Is Happening With Mexico’s Lithium Industry?

In April 2022, the Mexican government nationalized lithium exploration and exploitation, backed by the Sonora Plan, which aims to transform Sonora into a clean energy hub. To make the plan happen, the government announced an investment of over US$48 billion to strengthen the Sonora-US supply chain, promote the manufacturing of batteries and electric vehicles and construct clean energy power plants, including Latin America’s biggest solar plant in Puerto Peñasco.

Following the nationalization of lithium production, the mining industry wondered whether the government would withdraw concessions or seek out agreements with the players holding them. According to López Obrador, the government has chosen the latter option, although he said that agreements must be reached within the new framework of the state-owned company in charge of exploiting lithium, LitioMx. The president added that the government’s lawyers are analyzing the issue and will talk to these companies.

On Jan. 20, 2023, MBN announced that López Obrador announced the government would start granting concessions for lithium exploitation on Feb. 19, 2023. However, the only company that would be able to apply would be the state-owned Litio Para México. “We will go to La Venta, Sonora, where the to-be-granted mine will be delivered to a company that belongs to the nation,” López Obrador said at the time.