On a recent trip to Mexico City, Aaron and Alex found a rooftop patio to chat about South America’s growing role in the lithium supply chain. With billions flowing into the sector, lithium remains one of the most liquid and fast-moving industries within mining.
Nations from Canada to the U.S. and Europe will soon require all new passenger vehicles and light trucks to be electric or zero-emission. Carmakers are rushing to facilitate the change, and miners are no exception. As a result, millions of additional tons of lithium carbonate equivalent (“LCE”) will be required, and miners must find and extract the metal.
Canada, for example, is targeting 2035 for all new vehicles sold to be electric or zero-emission. But, by 2026, 20% of all new cars hitting the road must be electric.
Mexico’s Advantage in Global Lithium Supply Chain Race
Mexico finds itself at a crossroads of opportunity with an increasingly educated workforce… consider that Mexico now graduates more engineers than the U.S. every year. So, Mexico’s comparatively cheap labor gives it an advantage over Canada and the U.S. However, its educated and advanced workforce gives it an edge over other less developed South American economies.
Aaron and Alex evaluate countries that have changed their policies toward lithium, be it through nationalization attempts or other strategic moves. These laws and policies will determine which nations and companies emerge and thrive in the trillion-dollar electrification movement. Inflation and political unrest will prove challenging, but it is an opportunity many countries can’t afford to miss out on.
The mining industry is one sector we are paying close attention to as intense competition within the global lithium supply race is heating up. Between the geopolitics involved, carmakers, and billion-dollar discoveries in the mining sector, there will be numerous twists and turns with many potential winners and losers in this worldwide race.