AMLO Keeps Lithium in His Sights After Mexican Power Bill Snub
Mexico’s nascent lithium sector remains in the cross-hairs of Andres Manuel Lopez Obrador even after the populist president lost a battle to bring the industry under state control as part of an energy reform.
The government will review existing contracts for extraction of the key battery metal, AMLO, as he’s known, told reporters Tuesday, singling out a project run by China’s Ganfeng Lithium Co. to build Mexico’s first mine, in Sonora state.
The president’s comments are the latest blow to private investment in an industry that’s crucial for transitioning away from fossil fuels. While Mexico has yet to produce lithium commercially, previous governments granted permits including to Bacanora Lithium Plc, later bought by Ganfeng. It’s also a sign of growing resource nationalism around the world as governments look to gain more control of and profits from the key component in rechargeable batteries.
AMLO spoke on the same day as the Senate debates whether to give the state control of the mineral after the lower house approved a fast-tracked bill Monday. The president sees lithium as a strategic resource that should belong to the nation, much like oil.
Read more: https://www.bloomberg.com/news/articles/2022-04-19/mexican-leader-keeps-lithium-in-his-sights-after-power-bill-snub