Canada's Advanced Lithium in preliminary talks with Mexico's lithium firm for JV
02/03/2023 21:34
By Valentine Hilaire
MEXICO CITY, March 2 (Reuters) - Canadian miner Advanced
Lithium is holding preliminary talks with Mexican state-run
lithium company LitioMx to form a joint venture to exploit the
mineral, the firm's chief executive officer, Allan Barry, said
on Thursday.
"At this point in time the discussions are in a preliminary
phase. LitioMx is preparing its wish list of what would need to
be done to form a joint venture," Barry said in a phone
interview.
Canada's Advanced Lithium has permits for exploration mainly
in the Mexican state of San Luis Potosi and is seeking this
joint venture to start exploiting the metal, used in batteries
to power electric vehicles, Barry noted.
LitioMx head Pablo Taddei told Reuters earlier in February
that future lithium mining joint ventures must give the
government a majority stake.
"I have no problem with having a smaller piece of a big
pie... There are creative ways to come up with something that
works for everybody and I'm interested in a win-win situation
for us and them," Barry said when asked about Taddei's remarks.
Both parties have formally met twice, Barry said.
"We have only had exploratory meetings as with the rest of
the actors in the sector that have approached us. These are very
preliminary conversations and there is no concrete proposal from
either side," Mexico's Taddei said when asked about the
meetings.
One of the main attractions of the region is German
automaker BMW's battery manufacturing plant, which will be
constructed starting 2027, Barry said, adding the proximity will
help it align with the government's push to keep lithium
developments in the country.
German automaker BMW announced on Feb. 3 it will invest 800
million euros in the central Mexican state of San Luis Potosi to
produce high-voltage batteries and fully electric cars.
Carmaker Tesla is considering building an electric battery
plant in central Mexico, according to Martha Delgado, a Mexican
deputy foreign minister.
The developments come at a time when Mexican President
Andres Manuel Lopez Obrador is aiming to lure foreign companies
to the country and so Mexico can benefit from a trend of
nearshoring - in which firms operate part of a business in
nearby country - while maintaining control of the resources.
Lopez Obrador has insisted lithium is property of Mexicans
and should stay in the country.
(Reporting by Valentine Hilaire;
Editing by Sandra Maler)
((Valentine.Hilaire@thomsonreuters.com;))