Outlook for lithium production.
Mexico has the potential to become a significant lithium producer in the next few years. As well as having found deposits in several parts of the country that appear promising, the mining industry in Mexico benefits from a regulatory and taxation regime that has proved attractive to domestic and foreign investors.
- Domestic production of lithium would help reduce Mexico's heavy dependence on imports.
- The Sonora project could help Tesla assure access to lithium, a link in the electric vehicle supply chain it does not currently control.
- The government will struggle to tackle extortion, given the opacity of the relationship between crime groups and mining companies.