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Mexico's Lithium Bill Has Potential To Tighten Market For Longer - DJ

LATAM
  • Mexico Lithium Bill Could Tighten Market for Longer, Hit EV Makers – (Dow Jones)
  • Mexico's lithium bill could lead to a tight lithium market for longer that could potentially constrain electric-vehicle production, particularly if it sets a precedent for similar legislation in Chile.
  • With 1.7M tons, Mexico has 1.9% of the world's identified lithium resources, according to U.S. Geological Survey data. A bigger supply shock could come from Chile, where President Boric called for creating a state-owned lithium company and a constituent assembly is drafting a new constitution that could nationalize strategic assets including lithium. Chile hosts 11% of the world's identified lithium resources, according to USGS data.
  • "Fast-growing demand for EV batteries and concerns over potential future deficits are already pushing up lithium prices. Analysts at Jefferies wrote in a research note last week that spot lithium prices are more than double the 12-month average in all regions, and that the market is likely to remain tight into 2023." (DJ)

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