The Mexican government is drafting new legislation to boost private lithium production in the country as part of a strategy to integrate lithium production with the country’s powerful automotive industry. Mexico awarded lithium exploration concessions in the state of Sonora a decade ago. Of the 10 companies that were awarded the projects, 3 are currently active, including Ganfeng Lithium, the world’s third-largest producer of lithium compounds, which also has projects in Argentina. Mexico’s bet on lithium makes a lot of sense. As part of the renegotiated free trade agreement with the U.S. and Canada, within three years 75% of the components in cars manufactured in these countries must have 75% local content, including lithium batteries. “It’s not just about lithium extraction; we’re looking at how to design a comprehensive project so that Mexico can successfully integrate into a value chain,” said Tatiana Clouthier, Secretary of the Economy, during the meeting of the International Trade Commission of the United States-Mexico-Canada Agreement (USMCA) in May, according to Expansión magazine.

Source: Statista