He added that the new decree could mean the government may use its power of expropriation as a tool to force negotiations with companies that already have concessions in the zone, like Chinese lithium miner and battery maker GanfengLast year, Lopez Obrador's allies in Congress enacted a sweeping lithium nationalization aiming to ensure that Mexico can profit from surging demand for the ultra-light metal, which is needed to power future fleets of electric vehicles.
Armando Alatorre, a geologist and lithium expert, said the latest decree could lead to further changes for existing concessions, and he argued that establishing a new legal mining area superimposed over existing mining concessions is a recipe for confusion.Neither Lopez Obrador's office or Mexico's economy ministry, which was part of the decree, responded to a request for comment.
"It is reasonable to expect that the locations just defined may be awarded to LitioMx," according to the research note. To date, no commercial-scale lithium extraction from clay soils has been deployed, meaning the Mexican deposits will likely require new technology, extra investment and perhaps on-site processing plants.Such plants would require a significant spending commitment given their complexity, said energy and mining analyst Ramses Pech.