Here in Mexico the big midterm elections coming up in June are absorbing a lot of attention right now, but before we talk about that we just wanted to make some comments on a topic currently flying a bit under the radar: Lithium mines. The issue is, prior administrations granted a number of concessions to foreign private companies for the exploration and eventual production of lithium in Mexico, and a small number of these companies have been out in the desert scratching around in hopes of finding a viable mining site. Two things make this more important to Mexico now than it may have seemed a few years ago: First, a massive lithium deposit in the northern state of Sonora is being developed by foreign capital with plans to begin commercial production within two years; and second, Mexico is currently governed by a president who views the private sector — and particularly foreign companies — to be exploiters, thieves and enemies of the nation. Continue reading AMLO to lithium: My precious!
We have commented before in this space about President López Obrador’s relentless campaign to dismantle the previous administration’s energy sector reform that cleared the way for participation by private companies. For us, the historic reform was akin to throwing open the door to an attic that had been locked for years with a dead body inside (Pemex, in this case) to finally let in fresh air. Most of the ham-fisted maneuvers by the president and his enablers in the Mexican Congress have been at least temporarily blocked by legal challenges, including at the Supreme Court level. Undeterred, Mr. López Obrador (AMLO) launched his latest and most ambitious salvo this past week, ramming through the Chamber of Deputies via fast-track a reform of the current electricity law granting advantages to the state-owned former monopoly Federal Electricity Commission (CFE) at the expense of privately financed electricity generation plants. Continue reading Retrograde electricity reform upsetting the neighbors
We read in Morning Brew today that the International Energy Agency (IEA) is projecting that renewables will surpass coal as the primary source of energy generation by 2025. The Brew item actually says solar but the original Reuters story it links to says renewable sources. Either way, the growing importance of solar and other renewable energy sources combined with the tenuous outlook for fossil fuels continues to cast a dark shadow over President Andrés Manuel López Obrador’s campaign to prop up Mexico’s insolvent state oil company, Petróleos Mexicanos (Pemex). The entire world is innovating and expanding generation capacity in clean, renewable energy, and the Mexican government is out here trying to get people to use more diesel. Absolute face palm. Continue reading Mexico unmoved by this trendy clean energy thing