Resource nationalism in Central and South America surrounding lithium, a key raw material for electric vehicle batteries, is intensifying. Mexico, the world’s 10th-largest lithium holder, promulgated a bill to nationalize lithium on the 18th (local time). In particular, it made it clear that it would not take sides with either the US or China regarding lithium.
According to Reuters, President Andres Manuel Lopez Obrador signed a bill to designate the area as a “lithium mining sanctuary” in the northwestern state of Sonora, which is the main producer of lithium. He said, “The owner of this mineral (lithium) should be the state. Neither Russia, China, nor the United States can touch it.”
It is estimated that about 2.43 million tons of lithium are buried in Sonora. With this bill, the right to explore and mine lithium belongs entirely to the state.
President Obrador, a leftist, took office in December 2018. Unlike the previous administration, which promoted the opening of mineral resources, the government is pursuing a nationalization policy for resources such as lithium as well as petroleum and electricity. As a result, the government’s influence over the state oil company Pemex and the Federal Power Authority has also been greatly strengthened. Foreign energy companies, such as the U.S. and Canada, which have entered Mexico, and opposition parties are protesting, but they are not ready to back down.
Similar movements are emerging in other countries where leftist leaders have also come to power. Based on his student movement career, Chilean President Gabriel Boricci, the “jockey of the young left in Latin America” who came to power at the age of 36 in March last year, has pledged to establish state-owned companies for lithium production and ban privatization of strategic assets since his presidential campaign. Chile forms the ‘lithium triangle’ with Argentina and Bolivia. According to the US Geological Survey, it is estimated that about 60% of the world’s lithium reserves are located in this triangle.
Source: Donga
Mark Jones is a world traveler and journalist for News Rebeat. With a curious mind and a love of adventure, Mark brings a unique perspective to the latest global events and provides in-depth and thought-provoking coverage of the world at large.