Illustrating the challenges of starting from scratch, a
Mexican official knowledgeable about government plans for
mining, however played down the possibility the new state
lithium miner might achieve production anytime soon, instead
touting a different option.
"LitioMx could drive the value chain by importing lithium,"
the official told Reuters.
Asked for comment, a spokesman for Mexico's energy ministry
stressed that LitioMx remains focused on finding and extracting
lithium, and while future imports could be considered "it's too
early for that."
Unsurprisingly, mining companies are less than ecstatic
about the statist tilt of Lopez Obrador and Boric, who stressed
that under his plan private miners would be able to partner with
a not-yet-created state-owned producer, but only as minority
stakeholders.
"It's a brave bet to ask an investor to prefer an uncertain
marriage with a state company and a minority stake risking
capital and technology as opposed to simply flying alone," said
Armando Ortega, who chairs the executive committee of Baramin,
Mexico's biggest producer of barite, a mineral used in oil
drilling.
STATIST TREND Chile and neighbors Bolivia and Argentina are believed to hold more than half of the world's extractable lithium in otherworldly salt flats that typically employ evaporation pools to concentrate the metal, though new technologies are also being developed. The ruling socialists of Bolivia have also insisted that the state take the driver's seat in unlocking its huge but untapped reserves, although it is counting on the help of partners like Chinese battery giant CATL to do so.
Peru, a mining powerhouse best known for copper, might have pursued a similar approach to Boric to bolster its development of lithium had former President Pedro Castillo not been ousted late last year. The leftist Castillo won a narrow victory in 2021, pledging to nationalize the ultra-light metal along with other minerals including copper, but later moderated his position, leaving the promise unfulfilled. Ivan Merino, who was Castillo's first energy and mining minister, said in an interview on Monday that Peru is for now watching from the sidelines as the resource nationalism trend gains steam.
"It's now almost commonplace," he said. "We will see history made, but without participating in it." That leaves the exception to the trend, Argentina, as an increasingly likely Latin American destination for new private capital for lithium.
"That's not because Argentina is doing what needs to be done, but rather because of our neighborhood's upheavals and the world's spiking demand," said Santiago Dondo, its former deputy minister for mining. A strong pipeline of lithium projects in Argentina, the world's No. 4 producer, are already close to coming online. Dondo said the four political parties in the main opposition coalition to outgoing leftist President Alberto Fernandez recently voted to endorse private enterprise as the sector's main motor ahead of elections later this year. He noted that local control over mining in three key provinces in northwest Argentina managed to help thwart any moves toward lithium nationalization at the national level a couple years ago, boosting investor sentiment. But Dondo still worries that lithium could be eclipsed by another battery technology. "We don't know how many years we'll have this huge window of opportunity," he said. "Change in the energy transition is getting faster all the time." <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ World's biggest lithium producers Lithium key element for electric vehicle ramp up Scramble to tap Latin America's lithium riches accelerates ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (Reporting by David Alire Garcia in Mexico City; Additional reporting by Marco Aquino in Lima; Editing by Christian Plumb and Marguerita Choy)
Reuters Messaging: david.aliregarcia.thomsonreuters.com@reuters.net))