Lithium nexus: Energy, geopolitics, and socio-environmental impacts in Mexico's Sonora project

Abstract

The global transition to low-carbon energy systems has dramatically increased the demand for lithium, essential for energy storage and transport electrification—with lithium-ion (Li-ion) batteries as the dominant technology in both market segments. However, the majority control of its downstream processing by China present challenges. Enter the Sonora Lithium Project in Mexico, home to what could be one of the world's largest lithium deposits. This project symbolizes the convergence of geopolitical stakes, as both China and the United States (U.S.) have keen interests in its success. The Mexican government's 2022 establishment of Litio para México (LitioMx), a national lithium company, could reshape global lithium dynamics, but the influence of powerful drug cartels in the region presents significant security obstacles to rapid development. Further, modern mining's challenges, such as the need for sustainable practices and addressing socio-environmental concerns, come to the fore. Mexico's mining laws thus far fall short in ensuring Indigenous rights and environmental protection. The Sonora project, while promising, highlights the myriad complexities surrounding lithium mining. This paper delves into these challenges using the Sonora Project as a lens, aiming to provide clarity and insights for various decision-makers, stakeholders, and researchers.