Mexican Geological Survey Should Manage LitioMx, Experts Say

The creation of the new state lithium company LitioMx is the culmination of a series of efforts by the Mexican government to control the lithium value chain. The move toward nationalization has been criticized by the opposition and industry insiders ever since it was proposed. Now that the state company has finally been created, some experts disagree with its structure, mainly because they say that the Minister of Energy should not spearhead the company.

According to the decree published in the Federal Official Gazette (DOF) that established the company’s structure, the Minister of Energy will head the Managing Board of the company. Some industry experts disagree with this decision because they argue the Mexican Geological Survey (SGM) should direct it, since the organism has the required technical knowledge to run such a company. 

Fernando Alanís, former President, Mexican Mining Chamber (CAMIMEX) believes that since there is little information regarding lithium exploitation, the decisions regarding the mineral should be taken considering technical information rather than political issues. He warned that if technical aspects are not well thought-out, LitioMx could face the same fate as Uranio Mexicano (Uramex), a decentralized organism focused on power production using nuclear energy created in 1979, but which disappeared five years later. 

Other industry experts are worried that the lithium deposits being explored are located in clay deposits, even though no other country has managed to develop such deposits. Therefore, it is unknown whether these deposits are viable or not, since the ore concentrations are low. 

“The government has a deep lack of knowledge regarding lithium. The minister that has more to do with lithium is Economy, not even SGM, which has been studying it,” Luis Vázquez, President, the Association of Geologists and Mining Engineers in Mexico (AIMMGM)

According to Flor de María Harp, Director General, SGM, LitioMx and SGM will need to collaborate to speed up the exploration and exploitation of lithium, as well as to invest resources. She said that to date, the company has not been in contact with SGM.

Currently, SGM has identified over 80 regions with potential lithium reserves. Nonetheless, just one of them has tested whether it does indeed hold such a reserve. This project is located in in Bacadehuachi, Sonora and is operated by the China-based company Gangfeng Lithium.