PremiumMexican President Andres Manuel Lopez Obrador said that his administration will issue a call for US and Canadian companies to participate in the country's incipient lithium market
On Tuesday, Mexican President Andres Manuel Lopez Obrador announced that his government would issue a request for American and Canadian businesses to participate in the nation's emerging lithium market.
Although almost a dozen foreign companies have contracts to look for potential deposits, Mexico does not yet have commercial lithium production.
"In all cases there must be associations of the public company with private entities and we do not want lithium to be taken out of Sonora," he said at a regular news conference, referring to government plans to exploit the mineral in the northern Mexican state.
According to him, state-owned organisations will hold the majority stakes in the projects and the role of foreign businesses will be focused on developing infrastructure.
Only factories situated in Sonora will have access to the mineral, according to Lopez Obrador, who noted that lithium will be used for things like the manufacture of electric car batteries.
The president has urged the private sector to collaborate with the newly established state miner, stating that due to the size of the required investment, the government requires partners.
Analysts contend that despite the expansive salt flats of Chile and Argentina having more developed industries and market-friendly regulations, businesses are more likely to concentrate their short-term investments there.
In an effort to capitalise on the rising demand for the metal, Lopez Obrador nationalised Mexico's lithium deposits in April. Though Mexico does not currently produce lithium, the finance ministry estimated the value of Sonora lithium reserves at $600 billion.
(With inputs from Reuters)