Input Stories

Mexico’s relative lack of critical minerals and precious metals production and its policies regarding mining are doing the country and its allies a disservice (Economist Impact). 
 
What’s going on: In 2023, then-President Andrés Manuel López Obrador signed a decree bringing all of Mexico’s lithium resources under the state’s ownership. He also “bann[ed] private companies from exploring and exploiting lithium; all such activities will be carried out by a decentralized public authority, created by the Mexican government.”  

• Early this year, Obrador proposed a package of sweeping reforms. Among these was a proposal to prohibit open-pit mining.  

Why it’s important: The ban—which was notably absent from 100 pledges made by new Mexican President Claudia Sheinbaum on her inauguration day last month (S&P Global)—“could potentially violate the U.S.–Mexico–Canada Agreement Minimum Standard of Treatment clause, which protects investors from actions that harm their operations,” according to the Wilson Center.

• The USMCA is due for review in 2026, and it could help North American manufacturers reduce their reliance on Chinese suppliers—if its terms are respected.
• Critical minerals are vital to powering a clean energy economy, and Mexico “holds abundant mineral reserves” according to the think tank, “constituting 15.8% of global silver reserves (8.3% zinc, 7.1% lead, 3.5% copper).” 

What should be done: “The cross-border flow of critical minerals, the investment capital needed to fund mining projects and the products these minerals go into are essential to securing a more sustainable energy future for the U.S. and its allies,” said NAM Vice President of Domestic Policy Chris Phalen.