Can a lithium-ion battery make a profit in Mexico?
AMLO and many Mexican policymakers hope to leverage lithium to profit from the rapidly growing value chain of clean energy minerals and technology. Lithium-ion batteries, electric vehicles, and other clean energy technologies are attracting skyrocketing sums of capital.
Does Mexico offer subsidies to lithium battery manufacturers?
She said that the US currently offers subsidies to lithium battery manufacturers, while the Mexican government has said that there will not be direct subsidies to such companies, and that the finance ministry is working on a package of “interesting” incentives for Tesla to set up shop in Mexico.
Can Mexico develop a lithium industry?
Mexico could implement a similar strategy of allowing private actors with the necessary technology and resources to explore and extract Mexican lithium while fomenting a national and North American downstream lithium industry. Mexico already has a significant automotive sector that could facilitate lithium batteries and electric vehicles.
Should Mexico's lithium policy be revised?
Thus, Mexico will not extract lithium in the long term nor benefit from the demand increase and development of a value chain, especially in North America. Given these risks, this article postulates that Mexico’s lithium policy should be revised to open its market to foreign investment and use this nascent market to a good advantage.
Will Mexico develop lithium in Sonora?
In recent years, Mexico’s outgoing President, Andres Manuel Lopez Obrador (AMLO), has sought to develop lithium resources in the state of Sonora. AMLO and many Mexican policymakers hope to leverage lithium to profit from the rapidly growing value chain of clean energy minerals and technology.
Should Mexico use the USMCA to create a lithium value chain?
Thus, a scenario of absolute nationalism where the government conducts the exploration and extraction of lithium is implausible. Instead, Mexico requires the investment and technology of private entities to produce lithium. Also, Mexico should use the USMCA to create a lithium value chain among the three-member States to compete with China.
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