MEXICO CITY

Mexico’s struggle to safeguard its natural resources moved forward with President Andres Manuel Lopez Obrador signing a bill into law Wednesday that nationalizes lithium mining and extraction.

The mining bill, which secured the strategic mineral’s nationalization, was fast-tracked and approved by both congressional houses this week. The initiative was sent to Congress by Lopez Obrador before his controversial energy reform was shut down by the lower house on Sunday.

"I would like to thank the legislators, deputies, and senators who supported the mining reform so that lithium would be the property of the nation and that no foreign country, no foreign company or corporation would want to appropriate what belongs to the people of Mexico," he said at his morning press conference.

The energy reform looked to give state-owned energy companies greater market participation over private companies as well as leaving lithium exploitation in the hands of the state. Expecting a political loss over the energy bill, López Obrador announced the mining reform, which would “shield” Mexico’s lithium.

According to the United States Geological Survey (USGS), Mexico ranks in 10th place out of 23 countries with the biggest lithium reserves worldwide.

The president’s political opposition pushed back, saying Mexico did not have the resources or technology to carry out the mineral’s exploitation and commercialization, speaking in favor of private and foreign investment.

On Jan. 19, US senators submitted a letter to President Joe Biden, expressing their concerns over the possible nationalization of strategic minerals such as lithium. They said that legislation prohibiting mining concessions of copper and lithium would be “detrimental” to the Biden administration and in direct violation of the United States–Mexico–Canada Agreement (USMCA).

For now, Lopez Obrador has said that all mining concessions will be analyzed in accordance with the law. ​​​​​​​

"I have been reading comments saying ‘Why are we going to have lithium if we lack the technology?’ It might be, but we are going to develop the technology, or we will acquire it. Lithium is ours!” he said at his press conference.