PEMEX Eyes Lithium for New Revenue Streams

PEMEX is considering entering the lithium mining sector in partnership with the state-owned company LitioMx. This move is seen as a strategy to diversify its business portfolio and generate new revenue streams, as envisioned by Mexico's president-elect, Claudia Sheinbaum. In a press conference, Sheinbaum emphasized the importance of exploring alternatives beyond oil production and refining, as well as gasoline and diesel sales. This exploration includes the potential collaboration between PEMEX and LitioMx in lithium mining.

Sheinbaum pointed out that this initiative aligns with trends in other countries where oil companies are already venturing into the lithium sector. She believes that this would provide PEMEX with additional opportunities for extraction, development, and profits beyond oil and natural gas. She also mentioned that she is currently discussing the matter with Luz Elena González, who is slated to be the next Minister of Energy.

In 2022, the Mexican government nationalized lithium and other critical minerals due to their importance for industries like electromobility, proposing special legal treatment for these resources. On April 28, 2023, the Senate, led by MORENA senators, approved a Mining Law reform that shortened concession periods and made permit cancellations easier. Over 500 legal challenges have been filed against the reform, citing concerns over legal certainty and rights, however. 

"Lithium reserves in Sonora and other parts of the country are embedded in clay, which demands technology for extraction and utilization that is just starting to develop. We have worked and visited other countries where they have developed it, and we will continue to work on it," Sheinbaum said.
Mexico has estimated lithium reserves of 1.7Mt. Although the country has fewer reserves than several Latin American countries, experts suggest that, if economically viable deposits are developed, Mexico could become a significant lithium producer. The country hosts 82 lithium deposits across 18 states, with 13 located in Sonora, 12 in Puebla, nine in Oaxaca, and others distributed across various regions.

Sheinbaum’s Energy Commitments
The incoming president reaffirmed her commitment to PEMEX's refining projects, emphasizing the importance of processing all extracted materials, an idea originally promoted by President Andrés Manuel López Obrador. She also mentioned the continuation of the coking unit projects at the Tula and Salina Cruz refineries and the need to assess and potentially enhance the rehabilitation of existing refineries.

PEMEX’s coking unit in Tula is now expected to be operational by early 2025, according to Octavio Romero, CEO, PEMEX. The coking unit is central to Mexico's strategy for energy self-sufficiency, aiming to reduce imports of gasoline, diesel, and jet fuel. However, the government has acknowledged that this goal will not be achieved before the current administration ends. Construction of the Tula coking unit began in 2016 but was halted due to revelations of corruption involving Odebrecht executives bribing PEMEX officials to secure lucrative contracts. The project's estimated cost is currently MX$60 billion (US$3.28 billion), though the true cost remains uncertain due to ongoing technical challenges.