EconomyFinancialLast Minute: AMLO chooses Sonora as the headquarters of...

Last Minute: AMLO chooses Sonora as the headquarters of the new state body LitioMx

President Andrés Mnuel López Obrador has chosen Sonora as the headquarters of the new state company Lithium for Mexico. In the state is what until now is considered the most promising lithium reserve in the country, the Bacanora project in the municipality of Bacadehuachi.

The announcement was made by Alfonso Durazo, the state governor, in a brief message via Twitter. “I had an extraordinary meeting with our president López Obrador, at the National Palace. The state government will have a stake in the Lithium for Mexico company, which will be installed in Sonora, which will represent a great opportunity for economic development and benefit for the sonorenses”, he says in the message published this morning.

So far, details about the new state company are few. Last week the decree establishing the company was published, but details about its operation are still scarce. The head of the state company has not yet been announced, although it is known that it must be appointed by the president.

In this morning’s message, Durazo also announced that the president appointed him “responsibility for coordinating efforts to give continuity to the project,” without giving more details in this regard.

The federal government has estimated that the new company will begin operations in the next six months. Industry analysts estimate that the country will see its first production from the new state-owned company in at least a decade.

LitioMx, as the company has been designated, will enter the market with doubts about the ability of the federal government to lead all activities in the mineral chain, since the federal administration has proposed to extract the mineral without the participation of private capital.

Same as in Mexico: Government of Argentina wants to control all lithium in the...

The state company YPF-Litio is preparing to enter the exploitation of this material, from the extraction in the salt flats to the manufacture of batteries.

How has the exploitation of lithium been in Latin America?

The boom in electric vehicles has caused the price of this mineral to skyrocket, which represents an opportunity for Chile, Argentina and Bolivia, but with a high environmental cost.

Alfonso Durazo foresees that the lithium deposit will be a development engine for Sonora

The lithium value chain, which can be detonated from the exploitation of deposits in Mexico, has a potential value of 12 billion pesos.

The Ministry of Economy clarifies why the Geological Service will not generate resources for...

Lithium for Mexico (TilioMx) will be the agency in charge of exploiting said mineral and will report to the Ministry of Energy.

Moody's advice: do not use the same model for lithium as in Pemex

A state government is not necessarily a bad idea, but the results will depend on the flexibility of the federal government and not making decisions that favor political issues, says the agency.