UN Wants to Participate in Mexico’s Lithium Industry

As Mexico introduces new policies to boost the lithium industry, experts fear whether the country will be able to create a strong and responsible industry. In light of this, the United Nations (UN) has proposed an agreement for the industry to grow following Sustainable Development Goals (SDGs).

The UN, through the International Center for Excellence in the Sustainable Management of Resources in Extractive Industries and Energies in Mexico (ICE-SRM), explained that the main objective is to ensure that lithium-related activities respect SDGs. For example, on the issue of water, the organization has proposed the desalination of water or the search for deeper wells to ensure appropriate resource use.

“The idea is to sign an agreement before starting any activity. We have not signed anything yet. Once the signing is done, we would announce the activities that would kickoff LitioMx," Ulises Neri, Executive Director, ICE-SRM in Mexico, told Expansión Política.

Neri said the proposals could impact various segments of the lithium supply chain if accepted. ICE-SRM announced it is waiting for the government's response, which could take months.

Mexico’s Position in the Lithium Race

The world’s biggest lithium reserves are located in Latin America. According to the 2021 USGS Mineral Commodity Summary, the lithium triangle of Chile, Argentina and Bolivia holds around 58 percent of the world's lithium deposits. Mexico also has potential to develop a lithium market, as it ranks 10th regarding the largest lithium deposits.

Experts believe that Mexico could take advantage of the electromobility transition since its location and resources make it a good competitor worldwide. However, industry experts have highlighted that opportunities may be hampered due to state intervention and a lack of infrastructure and research. Another challenge is that Mexico's lithium reserves are in clay deposits, making them economically unviable, as extracting lithium from clay is an underdeveloped and unproven method.