SCJN Denies Amparo Against Lithium Nationalization

The Supreme Court (SCJN) upheld the Mexican government's exclusive control over lithium exploitation, dismissing an amparo filed by Grupo Bararal, which sought to challenge the April 2022 Mining Law reform. 

Grupo Bararal, holding mining concession 246359 for the San Pedro lot in Satevo, Chihuahua, argued that the reform affected its existing rights, as its concession was valid until 2068 for the exploration and extraction of various minerals. Despite these claims, the SCJN ruled that the constitutional amendment prohibited granting concessions for lithium, emphasizing that no private party can exploit this resource.

The ruling, delivered by Justice Alberto Pérez Dayán, reinforced the principle of constitutional supremacy, stating that even if the amparo had been granted, it would have had no practical effect due to the constitutional ban on lithium concessions. The decision was unanimous in the Second Chamber of the SCJN.

This resolution aligns with the government's broader strategy to secure energy sovereignty by retaining control over key resources such as lithium, essential for manufacturing batteries for electric vehicles and electronic devices. The move to nationalize lithium is seen as a way to ensure that the mineral's exploitation directly benefits national development, rather than being dominated by private interests.

The Mexican government is also facing arbitration from China-based Ganfeng Lithium and its subsidiaries, Bacanora Lithium and Sonora Lithium, over the cancellation of concessions for the Sonora Lithium project. The dispute was registered with the International Centre for Settlement of Investment Disputes (ICSID), and it remains unresolved, according to the center’s latest update.

Former President López Obrador justified the cancellation, citing the companies’ failure to meet investment thresholds, reports MBN. Initially slated for commercial production in 2023, the project’s future remains uncertain amid legal challenges and political tensions.

Mexico’s Pathway to Become a Lithium Producer 

The Bacanora lithium project would transform Mexico into a lithium producer. However, it has not yet produced lithium since the publication of the Mining Law reform, despite the government's objective to create local lithium value chains. 

On Oct. 7, 2024, MBN reported that the government of Buenos Aires signed a cooperation agreement with Mexico’s state-owned company LitioMx to promote collaboration on lithium development and its value chain. The agreement, which includes Buenos Aires’ Scientific Research Commission (CIC), focuses on advancing technologies for lithium extraction and use in renewable energy, electromobility, and batteries. 

President Claudia Sheinbaum emphasized that Mexico’s lithium reserves, primarily in clay deposits, require unique extraction technologies. She noted that the Mexican Petroleum Institute (IMP) and CONAHCYT are working to develop national expertise to manage the entire production chain. However, to date, no progress has been reported.