Mexican Petroleum Fund Allocates US$10.3 Billion to the Lithium Value Chain

The federal government approved a project worth US$10.3 billion by 2026, funded by the Mexican Petroleum Fund, aimed at adding value to the lithium supply chain through the construction of a battery assembly plant linked to the Olinia Electric Vehicle Project.

This figure would therefore represent the only physical investment to be made in lithium mining—a strategic activity reserved for the government, in which concessions to private entities are constitutionally restricted—in the country. Meanwhile, Litio para México, the state-owned company spun off from the Ministry of Energy, has a budget of US$826.8 billion for the entire year, which consists solely of current expenditures for payroll and personnel services. In real terms, this company’s budget was just 3.3% higher than the previous year’s.

However, in her second state-of-the-state address, President Claudia Shienbaum clarified that progress is being made on the strategic documents designed to assess domestic demand for renewable energy, stationary storage, and batteries—all of which are linked to lithium mining to advance the energy transition.

According to the president, to strengthen local capabilities for the energy transition through the development of technologies for lithium extraction, the renovation of the Experimental Cell Center and Battery Factory was completed, and work has begun on installing specialized equipment in preparation for its upcoming launch.

At the same time, the process for extracting lithium from Mexican clays has been optimized. In addition, efforts have been made to promote the use of strategic resources in the energy value chain. Based on the analysis of more than 200 samples of brine, five fields with economically viable lithium concentrations were identified in the Southern Region, with contingent resources exceeding 2 million metric tons, and progress was made on the country’s first demonstration plant for direct lithium extraction.

Although it has not been officially announced, these facilities could end up being located in Puebla, where, according to information released at the National Palace, Olinia’s operations are carried out.