Sheinbaum's Administration to Develop Lithium Production Chain

President Claudia Sheinbaum has outlined plans to establish a comprehensive lithium production chain in Mexico. She also emphasized that the Mexican Petroleum Institute (IMP) and the National Council of Humanities, Sciences, and Technologies (CONHACYT) have already developed the essential technology for extracting lithium from clay.

“Lithium in our country has unique characteristics. It is primarily located in Sonora and a few other northern states. Here, lithium is mixed with clay, which behaves like mud—expanding when wet and turning to powder when dry. Our goal is to implement this technology to extract lithium and establish the entire production chain within Mexico rather than exporting it. This is a crucial aspect of the Sonora Plan, which has already been set in motion with LitioMx. It is our responsibility to advance this development,” she stated.

Given the complexities of lithium extraction, an agreement has been established with Axel Kicillof, Governor, Buenos Aires, and Pablo Taddei, Director, LitioMx, to promote the development of lithium with financing support from CAF, the Development Bank of Latin America and the Caribbean. Sheinbaum noted that this agreement will accelerate the progress of LitioMx, leveraging Argentina’s valuable expertise.

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. Still, challenges persist.

Under the new government, there has been a significant shift toward enhanced engagement with the private sector in lithium. However, challenges persist, particularly with the ongoing legal dispute involving Ganfeng Lithium. 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.  

Sheinbaum emphasized that the conditions of the concession make it likely for Ganfeng to lose the legal dispute, given its inactivity in the area. “This lithium reserve should belong to the Mexican people. With the nationalization of lithium, it must be incorporated into the Sonora Plan project, which includes not only lithium exploitation but also significant development initiatives for the region."