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News Article

Latin American Lithium Forum/Self-Supply Systems to Disappear

By Paloma Duran | Wed, 04/27/2022 - 11:22

Meeting with Latin American lithium producing countries. President Andrés Manuel López Obrador announced that the Mexican government will participate in a meeting with Latin American lithium producing countries in order to exchange experiences and knowledge about the mineral. “We will have a meeting with countries that have high lithium deposits. We have established communication with the governments of Argentina, Chile and Bolivia. We are thinking of working together to make a lithium plan for Mexico.“

On April 19, the initiative to modify articles 1, 5, 9 and 10 of the Mining Law was approved. The new reform to the Mining Law seeks to guarantee the self-determination and energy sovereignty of Mexico through the nationalization of lithium and other strategic minerals. The reform proposes not to grant concessions, contracts, licenses, permits or authorizations to any private company interested in lithium. In addition, it commissions the Mexican Geological Service to find deposits rich in lithium and create a method to extract the mineral as soon as possible.

Government will further promote the disappearance of energy self-supply systems. López Obrador announced that the dialogue and negotiation between federal authorities and private companies that have self-supply energy systems will begin today so that they change their structure as soon as possible.  “According to the electricity law, which the Supreme Court of Justice declared constitutional, the so-called self-supply systems are illegal. It is an issue that many companies that have joined this system have to change. We are going to make sure they do it.”

In April, the National Supreme Court of Justice (SCJN) voted on the constitutionality of the Electricity Industry Law (LIE), which passed through Congress in 2021. With seven votes in favor of unconstitutionality and four against, the LIE will reactivate, yielding CFE a stronger position in the market.

Plan to deal with inflation. López Obrador announced that next Wednesday he will present a plan to address the rise of inflation in Mexico. In addition, the president said he will propose that 24 items in the basic food basket have the same price. “We are going to guarantee fair prices for basic food items. We are reaching an agreement with growers and distributors, the majority agree to set a leveled price for the basic food basket."

According to the National Consumer Price Index (INPC), inflation in Mexico rose to 7.72 percent in the first half of April, a level not seen since 2001. Previously, analysts anticipated a rate of 7.60 percent. According to INEGI, the products that increased the most in price in the first days of April were tomatoes and gasoline.

AIFA needs more flights. López Obrador called on the CEOs of Aeroméxico, Viva Aerobus and Volaris to increase the number of flights arriving and departing from the Felipe Ángeles International Airport (AIFA), since currently there are only six daily flights. “I spoke with Eduardo Tricio, CEO of Aeroméxico, to ask for his help. I think the company is going to hold a meeting to increase the number of flights. I asked him for help because the opposition is attacking and questioning us. It is just a matter of giving AIFA a good image because it is a very good airport."

On March 21, the AIFA was inaugurated, replacing the Mexico City International Airport (NAIM) projected for Texcoco.  Currently only Volaris, Viva Aerobus, Aeromexico  and Conviasa operate in the AIFA. The routes covered by these airlines are the following: Guadalajara, Monterrey, Cancun, Tijuana, Villahermosa and Merida. Moreover, Caracas, Venezuela remains the only international flight offered.

Click HERE for full transcript in Spanish

The data used in this article was sourced from:  
Gobierno de México, Milenio
Photo by:   Gobierno de México
Paloma Duran Paloma Duran Journalist and Industry Analyst