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Mexico’s President recently announced it will work with governments of Argentina, Bolivia, and Chile to create an association so the countries can share their expertise regarding mining and exploiting the battery mineral lithium. The association would build upon existing collaborative work focusing on the development, exploration, and processing of the mineral, as well as research into new technologies.
Chile already participates in Latin American initiatives for knowledge, experience, science, and technology exchange, and its Mining Minister stated that Chile is eager to join other initiatives that bring Latin Americans closer together.
According to United States Geological Service ('USGS') data, Chile has the world's third highest lithium deposits and is the second largest producer.
Argentina, for its part, is the world's fourth largest producer of lithium and is eager to speed up development, which has been slowed for years by red tape, high tax rates, widespread inflation, and currency controls.
According to the latest recent statistics from the USGS, Bolivia, Chile, and Argentina form the so-called ‘lithium triangle,’ a region that has approximately 56% of the world's lithium deposits.
Mexico has no commercial lithium production, although it contains potential reserves that, if proven economically feasible, would help it become a significant producer.
Last month, Mexico's Congress enacted a bill to nationalize the metal, tightening control over vital mineral resources, with its President promising to evaluate all mining contracts.
Nearly a dozen foreign businesses have active mining concessions in Mexico, including rights to prospect for lithium, including Bacanora Lithium, the country's most advanced project, which is operated by the Chinese corporation Ganfeng Lithium Company.
The bill nationalizing the country's future lithium sector, according to a division of the International Chamber of Commerce, breaches trade obligations and might be costly to the government if mining companies attempt to recuperate losses.
Since the beginning of last year, lithium has been experiencing a price surge, owing to a global push toward electric forms of transportation, which has resulted in massive demand from automakers and battery manufacturers.
