Mexican senators have passed a mining bill that confirms state control of lithium exploitation.
President Andres Manuel Lopez Obrador presented the initiative on Tuesday after his bid to increase government control of the electricity market failed on Sunday. A ruling coalition of legislators, led by the president’s Morena party, fast-tracked the bill, getting lower house approval on Monday. Senators approved the bill in general terms with 87 voting in favour, 20 against and 16 abstaining. Debate on some articles continued after the vote, and once those were approved, the bill was set to head to the president to be signed into law.
At his morning press conference on Tuesday, Lopez Obrador said Mexico will review existing contracts for the extraction of lithium, which has grown increasingly important as a component in rechargeable batteries including for electric cars. Mexico has yet to produce lithium commercially, but previous governments granted permits, including to Bacanora Lithium, which was later bought by China’s Ganfeng Lithium.
The president’s policies have prioritised strengthening state-owned companies over private investment.