Mexico Moves to Secure Critical Minerals Amid Global Shifts

Mexico is seeking access to 13 critical minerals through WTO negotiations and a US-led alliance as global supply chains shift to reduce dependence on China, which controls roughly 70% of refining capacity and 91% of rare earth processing. The strategy aims to secure inputs for Mexico’s automotive, energy, electronics, and defense sectors. This policy shift impacts mining companies, manufacturers, investors, and trade partners amid rising geopolitical competition and evolving trade rules.

Mexico is moving to secure access to 13 critical minerals it lacks or produces in limited quantities through international negotiations, Minister of Economy Marcelo Ebrard said, as the country seeks to safeguard inputs essential to its industrial base while strengthening its position as a global producer of other strategic minerals.

Ebrard said Mexico must participate in international forums to guarantee the supply of minerals essential to its industrial base, citing aluminum as a key input for the automotive sector. The minerals Mexico considers scarce or unavailable are aluminum, cadmium, cobalt, chromium, germanium, iridium, lithium, nickel, palladium, platinum, tantalum, titanium and vanadium.

He said critical minerals trade will be part of the agenda at the WTO’s XIV Ministerial Conference, scheduled for March 26-29, 2026, in Yaounde, Cameroon. The meeting is expected to address proposals to redo the organization and review rules related to critical minerals trade. Mexico is also participating in forums with Latin America, Ibero-America, India and Canada.

While seeking to secure imports of strategic inputs, Mexico also ranks among the leading global producers of eight of the 60 minerals identified as critical by the US Geological Survey. The USGS classifies these minerals based on their economic and strategic importance, particularly for technologies such as batteries, energy systems, electronics and defense, as well as exposure to supply chain risks.

According to USGS data, Mexico is among the top global producers of antimony, barite, copper, fluorite, graphite, lead, silver and zinc. The United States depends entirely on imports for 11 critical minerals, and Mexico supplies fluorspar to the US market. 

Lithium is one of the most strategic minerals globally due to its role in batteries and energy storage. Mexico has identified deposits in northern states, particularly in Sonora, positioning the country as a potential future producer. However, extracting lithium from clay deposits remains technically complex and costly, compounded by policy uncertainty and environmental requirements. Authorities have indicated that a technology to extract lithium has been developed, although details have not been disclosed.

Global Alliance Efforts Intensify on Critical Minerals

Global competition over critical minerals intensified in early 2026 as governments moved from market-driven approaches to coordinated industrial strategies aimed at reducing dependence on China, which dominates multiple segments of the mineral value chain.

On Feb. 4, 2026, the United States convened the Inaugural Critical Minerals Ministerial, bringing together 55 nations to formalize a preferential trade zone for strategic materials. The initiative marked a shift toward an alliance-based framework designed to shield participating economies from supply shocks and pricing volatility. Measures under discussion include price supports, production standards, subsidies and guaranteed offtake agreements to stimulate investment across the supply chain. Benchmark prices would be set at multiple stages of production, backed by variable tariffs to maintain minimum pricing levels within the bloc.

Parallel efforts are unfolding in Latin America. A renewed dialogue between Presidents Donald Trump and Luiz Inácio Lula da Silva has centered on rare earth development. Brazil holds an estimated 21Mt of rare earth reserves, the second largest globally, but the sector has faced capital constraints. The US International Development Finance Corporation committed nearly US$500 million in financing to Serra Verde, Brazil’s only active rare earth producer. 

Within the Pacific Alliance, Mexico’s 2026 pro tempore presidency is prioritizing the industrialization of critical minerals and rare earth elements to deepen regional value chains. The bloc, Chile, Colombia, Mexico, Peru and Costa Rica. represents 40% of Latin America’s GDP and nearly 60% of its total trade. Sergio Contreras, representing the Mexican Business Council for Foreign Trade and the Pacific Alliance Business Council, said these resources are strategic assets for regional sovereignty. The alliance is aligning mining and processing sectors to support semiconductor and battery manufacturing.

China’s Dominance in Critical Minerals and Strategic Risks

Critical minerals underpin energy technologies, advanced manufacturing, defense, and high-tech industries, yet global supply chains remain heavily reliant on China, creating strategic vulnerabilities. 

The IEA’s Global Critical Minerals Outlook 2025 shows China dominates refining for 19 of 20 key minerals, holding roughly 70% of the market, and controls 91% of rare earth refining and 94% of permanent magnet production. Export restrictions imposed in 2025 on rare earths and related products have already caused shortages, price spikes, and risks for sectors from defense to AI and semiconductors.  China also dominates lithium-ion battery midstream and downstream production, including cathodes, anodes, and cells, threatening electric vehicle and energy storage supply chains. Diversifying sources is slow: projects outside China face long lead times, limited scale, and insufficient midstream capacity.