Bacanora Lithium has the concession of a large lithium deposit in Sonora and continues to advance its project to build a lithium battery plant in Mexico.
This company established an alliance with Ganfeng Lithium Co Ltd, the largest producer of lithium compounds in China.
Ganfeng continues to work with its suppliers and, together with Bacanora Lithium, maintains the previously advised project delivery schedule with the first lithium production in the second quarter of 2023.
The project’s delivery schedule includes the first equipment deliveries from China that will arrive in Mexico in the second quarter of 2022 and the dry start-up of the lithium plant is scheduled for the second half of 2023.
Additionally, according to Bacanora Lithium, recent quotes for bulk steel deliveries and plate work in Mexico have confirmed that prices are still within budget.
At the same time, a short list of LNG suppliers has been completed, sources of supply, from Hermosillo or Agua Prieta, are being evaluated, and draft supply contracts are being reviewed.
The assessment of cogeneration energy providers continued in 2021, with proposals from a short list of three providers currently under evaluation.
In 2020, politicians from the MORENA party presented plans to reform Mexico’s constitution and mining code in order to nationalize lithium resources in the country.
Then, in June 2021, the Mexican government took a step back from nationalizing existing lithium concessions and announced a possible new lithium law.
In turn, the Ministry of Economy, Tatiana Clouthier, said that the government was considering a public-private partnership to develop new lithium concessions and indicated that the government can institute a rule with a mandatory state participation of 51% for new lithium concessions. lithium.
More recently, on October 1, 2021, the Mexican government presented to Congress a proposal for constitutional changes with the primary objective of strengthening the state electricity company. As part of these reforms, future lithium concessions would be in the hands of the state.
The new reforms will not affect lithium licenses already granted to private companies as long as exploration work has already started and all license requirements have been met.
Ganfeng completed its option to increase its stake in Sonora Lithium Ltd (SLL) from 22.5% to 50% on February 26, 2021.