Politics Economy Country 2026-03-25T16:32:44+00:00

Mexican Supreme Court Validates Lithium Nationalization

Mexico's Supreme Court upheld the constitutionality of a 2022 reform granting the state exclusive rights to lithium exploration and exploitation, dismissing a challenge from opposing legislators.


Mexican Supreme Court Validates Lithium Nationalization

The Supreme Court of Justice of the Nation (SCJN) yesterday validated the 2022 reform to the Mining Law, which declared lithium and other minerals as strategic areas, whose exploitation and utilization are exclusively of the State. This decision reversed the stance of the minority of legislators from the Congress of the Union who challenged the reform through an unconstitutionality action. Yesterday, the Court deemed this action partially admissible but unfounded. The ministers dismissed the five arguments of the complainants, including violations of the constitutional mining regime, the principle of legality and legal certainty, and the lack of consultation with indigenous peoples and communities. They added that for this case, prior consultation with indigenous and Afro-Mexican peoples was not mandatory, as the reform did not generate a direct and differentiated violation of their human rights. The reform, enacted in April 2022, modified the framework for private participation in the mining sector and reserved for the State the exploration, exploitation, benefit, and utilization of lithium. That is, it imposed an express prohibition on granting concessions to private parties and mandated the creation of a decentralized public body in charge of its management. Consequently, Articles 1, 5 Bis, and 10 of the Mining Law were validated, which reserve for the State the exploration, exploitation, benefit, and utilization of lithium and prohibit the granting of concessions to private individuals. Furthermore, they establish mining reserve zones in areas where deposits of this metal exist and provide for the creation of a decentralized public body responsible for these activities. In this regard, the plenary session highlighted that the constitutional reform consolidated this character by establishing the prohibition of concessions in this matter as a control parameter. Finally, the Court ruled that the classification of lithium deposits as mining reserve zones is in line with the principles of legality and legal certainty, as its application must be carried out according to the procedures established in the Mining Law and its regulations, which require technical justification and the intervention of the Mexican Geological Service.

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