The presidential decree, endorsed by the two chambers of Congress, declares lithium to be of public utility, for which no concessions, contracts, or licenses will be granted to private or foreign companies.
It also highlights the creation of a special decentralized public body that will be in charge of the exploitation and use of the mineral, to be formed in less than 90 days.
The Mexican Geological Service will assist the agency in the location and recognition of geological areas in which there are probable deposits of lithium. The decree entered into force with the reforms of the Executive to articles 1 and 10 of the law, as well as an addition to article 5.
Consequently, as of this Thursday the government can make effective the announcement made yesterday by President Andres Manuel Lopez Obrador to review all authorized contracts for lithium. The president explained that this examination will be due to events such as the agreement between a British company and a foreign transnational that was sold a lithium concession contract in Sonora by the former.
Lopez Obrador insists on the need for people to fully understand the importance of lithium, already considered white gold because the world’s energy future will depend on this mineral, since all batteries will depend on it.
Lithium will be fundamental for the automotive industry, and it will not be necessary to wait long since a process of technological transformation has already begun to further develop electric vehicles in place of the ones that run on fossil fuel.
The president replied to criticisms of the nationalization that said that Mexico lacks the technology to develop the lithium industry by saying that one thing has nothing to do with the other because if the country does not have the capability now, it can develop it or even acquire it, but the important thing is that lithium is in Mexican hands.