In Sonora, President of Mexico, Andrés Manuel López Obrador, declares more than 230,000 hectares a lithium mining reserve zone…

The oil and lithium belong to the nation, they belong to the people of Mexico and to all those who live in this region of Sonora, says the president.

  PRESIDENCY OF THE REPUBLIC : 18 FEBRUARY 2023 : PRESS RELEASE

In Sonora, President AMLO declares more than 230,000 hectares a lithium mining reserve zone

Bacadéhuachi, Sonora, 18 February 2023 - President Andrés Manuel López Obrador declared a lithium mining reserve zone of 234,855 hectares located in the Sonoran municipalities of Arivechi, Divisaderos, Granados, Huásabas, Nácori Chico, Sahuaripa and Bacadéhuachi, the region with the greatest potential for the exploitation of the mineral in the state.

During the signing of the agreement instructing the Ministry of Energy to follow up on the declaration, the president recalled the decision to use the strategic mineral for the benefit of the people.

He said that the historical process that led to the expropriation of oil is related to this day, since the Porfirian regime handed over oil to foreigners without any benefit for the people, and it was not until 1917 when the Constitution established that the subsoil assets belong to the nation. Due to pressure from the US government not to pass the oil law, it was not until 1938 that President Lázaro Cárdenas del Río led the expropriation.

"What we are doing now, keeping in mind the proportions and at another time, is nationalising lithium so that it cannot be exploited by foreigners, neither from Russia, nor from China, nor from the United States. Oil and lithium belong to the nation, they belong to the people of Mexico, to you, to all those who live in this region of Sonora, to all Mexicans.

After mentioning the decree of 20 April 2022 that reformed the Mining Law to establish that lithium is patrimony of the nation, he explained that the technical process of exploration and extraction of this basic input for the automotive industry will begin.

"It is not possible to make electric cars - as is the commitment of the US government and the commitment of the Canadian government, and also our commitment, and it is something that we approved - we could not advance in this objective if we do not have lithium. So, a process of technological development begins in order to have the raw material, also with the purpose of installing plants for the production of batteries".

He indicated that this action is complementary to the Puerto Peñasco photovoltaic plant, of which the federal government concluded the first stage, with which our country is taking the first step in the use of clean energy.

He stressed that the state has what it takes to trigger the automotive industry, as it is the second largest copper-producing state in the world, which complements the industrial development sought by the Sonora Plan.

Governor Alfonso Durazo Montaño explained that the decision to nationalise lithium is related to the nationalisation of the oil and electricity industries so that natural resources remain in Mexico for the benefit of the economy and communities.

After reaffirming the commitment to look after the public interest and the defence of the nation, he recalled that on 5 August 2021, the President of the Republic issued an executive order to the automotive industry that at least half of all new vehicles must be electric by 2030.

In this regard, he said that Mexico and Sonora guarantee the fulfilment of the Sonora Plan in terms of sustainable energy, as the state has the largest lithium deposit and is the only producer of graphite in the country, as well as the second largest copper producer in the world.

After confirming that this government promotes investments with a social dimension, the Secretary of Economy, Raquel Buenrostro Sánchez, stressed that the nationalisation of lithium deepens the transformation project for the country in this century, by laying the foundations for an industrial and clean energy policy for the next 50 or 70 years, as our country is rich in materials for the energy transition, especially lithium.

He pointed out that the conversion of internal combustion units to electric power is underway and will grow exponentially in the coming years, for which lithium is required.

"What better opportunity for the industry than to do it hand in hand with the specialised knowledge and experience of Mexican workers. That is why all the automotive companies are looking to us to settle in our territory in various parts of the country."

He added that the declaration of the lithium reserve that President López Obrador formalised today, together with the industrial policy implemented by the Ministry of Economy, will have a bright future for decades to come.

"The nationalisation of lithium will be remembered by future generations as the turning point that gave way to the new industrial policy and import substitution of this century, an industrial policy that is committed to clean energy."

It is worth remembering that on 20 April 2022, the federal chief executive issued the decree that reformed the Mining Law to establish that lithium is patrimony of the nation, and reserves its exploration, exploitation, benefit and use in favour of the people of Mexico.

Also accompanying the President of the Republic were: the Secretary of Energy, Rocío Nahle García, as well as the Secretaries of: National Defence, Luis Cresencio Sandoval González; Finance and Public Credit, Rogelio Ramírez de la O; and Infrastructure, Communications and Transport, Jorge Nuño Lara.

Likewise, the undersecretary of Expenditure of the SHCP, Juan Pablo de Botton Falcón; the general coordinator of Social Communication and spokesperson for the Presidency, Jesús Ramírez Cuevas; the general director of Lithium for Mexico, Pablo Daniel Taddei Arriola; and the municipal president of Bacadéhuachi, Luis Alfonso Sierra Villaescusa.