In response to the growing challenges created by climate change, consumers across the globe are demanding more environmentally friendly products. This demand is particularly evident when examining the automotive market. In 2021, global sales of electric vehicles (EVs) more than doubled from the year before, rising from 3 million to 6.6 million vehicles according to the International Energy Agency. This boom has created a need for lithium, a key component of the rechargeable batteries used to power these vehicles. Referred to as ‘white gold,’ countries with lithium reserves are racing to increase extraction and export deposits for battery production. As automobile and battery manufacturers work to meet demand and avoid supply chain shocks, many are looking toward the untapped potential of Mexican lithium.

Currently, there are 36 lithium mining concessions in Mexico, all of which are controlled and financed by foreign companies. The largest and most promising of these concessions is in Sonora, Mexico.

In 2018, Bacanora Lithium reported a discovery of a 243.8 million tonne lithium reserve in Sonora. This is the largest known lithium deposit in the world. According to S&P Global Market Intelligence data, these reserves have a total value of $22.6 bn. Bacanora Lithium is a UK-listed company, however, Chinese lithium giant Ganfeng International Trading holds over 90% of the company’s shares. In December 2020, Bacanora’s CEO, Peter Secker, stated that Bacanora would plan to export the mined lithium to Asian markets for battery production.

In theory, the economic potential that Sonora’s lithium reserves hold is huge, however, there are major political, technological, and environmental barriers preventing Mexico from striking ‘white gold.’

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