The relevance of lithium to make Mexico a power (and the two dangers it faces)

“Mexico is ready to become a power thanks to its abundant lithium reserves,” Alejandro Armenta Mier, a senator for the National Regeneration Movement (Morena) party, assures in an exclusive interview with RT.

The legislator of the Upper House has just published ‘The importance of lithium in Mexico: the white gold of the world to think big’, a book in which he highlights the challenges facing the Latin American nation to develop this strategic mineral.

Armenta Mier, who a few days ago was appointed President of the Board of Directors of the Senatehighlights that Mexico has the potential to be placed on the podium of countries that are dedicated to the exploitation and transformation of this natural resource, including Chile, China and Korea.

Put a stop to the abuses of mining companies

Just as oil was the key input for a large number of industries throughout the 20th century, “the lithium is called to play a role prevailing in the 21st”sentences the morenista legislator for the state of Puebla.

To those who are skeptical, it reminds them that after President Lázaro Cárdenas del Río made the decision to nationalize the ‘black gold’ in 1938, Mexico managed to become one of the main oil producers on a global scale.

At present, in the same way, affirms Armenta Mier, the determination of the president Lopez Obrador to ensure the Nation’s dominance over lithium “opens the possibility of catapulting the economic development of Mexico”.

“It is true that mining is also a history of abuses,” he laments. He details that “many of the foreign companies that operate in the country have obtained concessions for more than fifty years, paid low wages and generated environmental pollution on an unprecedented scale.”

While the biggest dividends are repatriated, in Mexico they leave nothing but poverty and environmental degradation. This “model of depredation,” explains the legislator, “deepened from the 1980s, when neoliberal governments came to power.”

It was from then on, he highlights in his book, that the greatest number of concessions (and for a longer time) were granted to individuals and environmental regulation in mining matters was undermined.

It was from the 1990s when foreign companies took control of 70% of the concessions, which add up to a total of 92 million hectares of national territory.

In the 1990s, as a result of a series of reforms carried out during the governments of Carlos Salinas de Gortari and Ernesto Zedillo, foreign companies appropriated most of the concessions.

Based on a report published by the Mexican Mining Chamber, Armenta Mier asserts that it was from the 1990s when foreign companies took control of 70% of the concessions, which add up to a total of 92 million hectares of the national territory.

Currently, the countries of origin of companies with the largest number of mining concessions in Mexico are: Canada (207), USA (43), China (8)Australia (6) and Japan (5).

All in all, Armenta Mier highlights that in Mexico “foreign investment is not rejected”, however, under the Government of the so-called ‘Fourth Transformation’, headed by President López Obrador, “no more abuses will be allowed” by foreign companies .

He regrets that the Nation’s dominance over lithium has not been incorporated into the Constitution due to the refusal of the opposition parties. However, he celebrates that at least a secondary law reform could be carried out, the Mining Law.

This reform, approved in April of this year, establishes that “lithium is the Nation’s heritage.” It also contemplates the creation of a public company that will be dedicated to the exploration, extraction and processing of lithium, in addition to generating geological information and carrying out research and technological development for its use, among other tasks.

Armenta Mier considers that the start-up of ‘Lithium for Mexico’, company in charge of the State, represents a “historic milestone” comparable to the launch of Petróleos Mexicanos (Pemex). The Morenista legislator explains that this company will increase job opportunities for the local population and, with it, will become a ‘national development lever’.

Asked about the role that private capital will play in the lithium industry, Armenta Mier insists that the government of President López Obrador does not reject investment from individuals, nationals and foreigners. He points out that “the participation of entrepreneurs is necessary for the development of the entire value chain.”

What it is about, he explains, is that the company ‘Lithium for Mexico’ explore and extract this natural resource to later convert it into lithium bromide and lithium chloride, the inputs that companies will be demandingboth domestic and foreign.

The participation of the State is due to the need for the profits generated from the exploitation of this natural resource “to also be distributed among Mexicans, not only to be repatriated by the large mining companies,” explains the president. of the Board of Directors of the Upper House.

The dangers around lithium: water scarcity and environmental devastation

Although it is considered a mineral that will be essential to carry out the energy transition, not everything is ‘honey on flakes’. There are two main risks that Mexico faces for its use.

The first is water scarcity already suffered by vast regions of the country. In fact, the National Water Commission (Conagua) declared an emergency situation due to drought on a national scale in mid-July of this year.

The exploitation of the so-called ‘white gold’ requires a large amount of water. It is estimated that to extract one kilogram of lithium, at least 31 liters of water are required.

In addition to high water consumption by mining companies interested in lithium, the use of harmful chemicals for its extraction entails risks to human and animal health, in addition to damage to aquifers, air and soil.

The Government has not offered details on what technique will be used to extract the so-called ‘white gold’, although it has insisted that it will be carried out while safeguarding the environment.

Currently, the states where the automotive companies are installed, such as those located in the Bajío region, or even large cities such as Guadalajara or Monterrey, already face supply problems.

In the case of lithium, in all the states where deposits have been found so far, it is recorded water deficit: Baja California, San Luis Potosí, Zacatecas and Sonora.

The Another aspect to consider is the technique to be used.. To extract the lithium found in clay, it is regularly carried out opencast mininga process not only dangerous, but also highly polluting.

So far, the government of President López Obrador has not offered details on what technique will be used to extract the so-called ‘white gold’, although it has insisted that it will be carried out while safeguarding the environment.

However, it is noteworthy that the method generally used to extract lithium in clay, open pit mining, is banned by the government of the so-called ‘Fourth Transformation’.

When asked about these two dangers around lithium, Armenta Mier assures that the government of President López Obrador will have the capacity to face them.

Regarding the scarcity of water, he explains that they are already taking action on the matter. In the Congress of the Union, he details, Morena’s bench promotes a initiative to desalinate ocean water.

This proposal, he comments, “seeks to resolve the depletion of the water table due to intense urbanization, as well as the high level of demand required by agricultural activity.”

As for the method to be used to extract lithium from clay, without offering details, Armenta Mier assures that the company ‘Lithium for Mexico’ will act within the legal frameworkunlike what private mining companies have done in recent decades.

“Foreign companies in many cases do not abide by the regulation, they act contrary to what they would do in their countries of origin, that is why it is so important not only that there is regulation, but also supervision,” he concludes.

Ariel Noyola Rodriguez

@noyola_ariel