Can a lithium-ion battery make a profit in Mexico?

AMLO and many Mexican policymakers hope to leverage lithium to profit from the rapidly growing value chain of clean energy minerals and technology. Lithium-ion batteries, electric vehicles, and other clean energy technologies are attracting skyrocketing sums of capital.

Will Mexico's lithium reserves become a key asset?

Global clean energy investment surpassed investment for fossil fuels in 2016 and by 2023, clean energy investment exceeded that for fossil fuels by over half a trillion dollars. 1 This precipitous increase means that Mexico’s lithium reserves may become a crucial asset.

Why is lithium mining a problem in Mexico?

First, unregulated lithium mining can threaten local ecosystems through pollution and water loss. Second, drug cartels have a track record of co-opting other natural resources in Mexico to diversify their revenue streams.

Will Mexico start producing lithium-ion batteries in 2023?

Mexico hopes to commence production of lithium-ion batteries in late 2023 and several countries are investing in this production, including the United States, South Korea and China.

Is Mexico a good place to invest in lithium?

Mexico is not currently producing lithium and does not have experience in the sector, meaning input from private-sector mining companies would be highly valuable.

How much will Sonora's lithium reserves be worth?

A report from the Mexican finance ministry estimates that Sonora’s lithium reserves could be valued at as much as $600 billion. And the exploitation of these reserves would help reduce Mexico’s reliance on foreign powers for its lithium supply to make the batteries required for EVs and renewable energy projects.