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Https://www.telematicswire.net/mexico-halts-incentives-for-chinese-ev-makers/
During this meeting, Mexican officials clarified that they would not extend incentives previously awarded to automakers. Furthermore, future meetings with Chinese automakers are on hold. This decision reflects concerns about Chinese automakers accessing the US market through Mexico, potentially circumventing tariffs and other trade barriers.
The move is attributed to pressure from the US government, particularly the Office of the United States Trade Representative (USTR), which aims to prevent Chinese automakers from entering the free trade zone established under the North American Free Trade Agreement (NAFTA).
The Mexican Economy Ministry declined to comment. The office of Mexican President Andres Manuel Lopez Obrador did not immediately respond to a request for comment. A White House spokesperson affirmed President Joe Biden’s stance: Chinese vehicles threatening national security won’t inundate the US market.
They odds are stacked against the MEX GOV, it seems obvious Ganfeng were their best way to having an industry:
Lithium Americas Plunges After Shares Sold at Steep Discount
https://ca.finance.yahoo.com/news/lithium-americas-plunges-shares-sold-133628815.html
I'm not sure how they think they could improve on what Ganfeng have to offer $1bn - $3bn, mine, processing plant and recycling plant - plus they are the world number one lithium metal producer as well as forty lithium compounds in production.
I would say a dead cert battery production would be on the cards now.
The problem is the autocratic narcissist and the way he weakens the judiciary and manipulates legislation:
https://apnews.com/article/mexico-president-projects-rushing-mistakes-lopez-obrador-1d287dc9ebf4872ce7ef9e742a2bc232
On Wednesday, his party pushed through the Senate a law that would prohibit judges from blocking government projects, even if citizens file appeals against them.
Have a read to understand what we are up against, and a typical project AMLO decides will get done and Durazo is implicit.
https://apnews.com/article/mexico-train-environment-climate-rewild-biodiversity-812e0f33dea38eb41220025afdcef2fa
I think the Mex gov under Morena will want to take possession of the Sonora clays for as little as possible, there's no one reason they have given for the Ganfeng and REMM concessions, the mining laws, spend, environmental and the next obstacle will be the open pit mining ban:
Claudia Sheinbaum, a presidential candidate with a clear lead in polls and a member of López Obrador's Morena party, has already made promises to push for the ban.
https://www.spglobal.com/marketintelligence/en/news-insights/latest-news-headlines/mexico-s-push-to-ban-open-pit-mining-likely-to-outlast-l-243-pez-obrador-s-term-80738199#:~:text=Indeed%2C%20the%20open%20pit%20mining,recent%20polls%2C%20according%20to%20Reuters.
My view is their plan is to introduce the open pit mining ban and then develop the Sonora open pit mining using the military to circumnavigate any environmental requirements and little exposure to the media - if you look at the projects AMLO has rushed through involving the military.
There's 500 plus Amparo's from mining companies in place!
Whatever happens AMLO has to come out smelling of roses if its within his term if not then Claudia Sheinbaum will only continue under his influence.
I'll take international Arbitration as the Mexican gov seemed determined to miss an opportunity rarely seen in a lifetime to have a robust industry supporting EV's and Storage.
IMHO
If I were the Mex gov, I would take up the Ganfeng offer - even where the grass might seem greener!
https://www.mining-technology.com/news/lithium-americas-thacker-pass-project/?cf-view
Lithium Americas launches $275m offering for Thacker Pass project The company intends to sell 55 million shares at $5 each through the offering.
The commencement of Phase 1 production is targeted by 2027, with the lithium produced expected to qualify electric vehicles for consumer incentives under the US clean energy tax credits programme.
Last month, Lithium Americas secured a conditional commitment for a $2.26bn loan from the US Department of Energy to construct processing facilities at the Thacker Pass mine.
That was all on the table for Sonora and would have been producing by now. Not forgetting Ganfeng were involved with Thacker Pass and took on Sonora, likely due to Trump rhetoric at the time.
@News.
all output was destined for China, Korea and Japan mentioned here, Peter Secker on the REM bid
https://youtu.be/e3yTED79Dhg?si=iwQzok8oWSNA1ATt&t=1404
Peter Secker never considered the US as a market when DL was touting Tesla, I recall later he included Europe and then much later the US, but of course the inflation reduction act wasn't on the horizon back then.
In that clip, imagine if you were to suggest $82,000/t
I still think Hanwa was our missed opportunity if they had delivered on the investments in addition to the off-take - if only!
DL was talking $6,000/t
Https://seekingalpha.com/article/4684251-ganfeng-lithium-staying-neutral-following-recent-investor-briefing
There's nothing to add from Ganfeng until they get some indication from their lawyers, that's how I read it.
@Struv5,
I have no problem in saying yes I have lost faith since the raise, I was expecting something to be released that would justify the actions from the bod since early March - my faith has a correlation barometer - 'SP' -- you can account for market sentiment, geopolitical circumstances and other factors in a mining investment but the last 35% drop has only one one explanation as things stand.
Shame though, I was hoping to see the ten years of holding cross next month before I changed camp - twelve months or more of the data room and interested parties and we are reduced to a cash raise scramble that must in my view weaken our position in any negotiations - I was expecting something along those lines of an intertest being expressed with the increased stake in AMAPA and instead got the complete opposite.
Why didn't I listen?
Three weeks ago, a YT link from MLQ to Stock box discussing KDNC - they thought the project funding was sub 150 million and the view then!!
https://youtu.be/SU6r5QtDtas?si=jV4F5vWnSpvVgFLf&t=2266
Yes, and KM has managed to create a great deal of doubt around the ability of KDNC to develop AMAPA - I can only see any potential investor exploiting our cash position in their favour.
AIM at the moment is for short term investors, any gains are being taken and people move on to the next big bet - KDNC seem higher risk now than a year ago - why gamble on EMH coming good as KM is when you can just flip and buy yourself as I'm sure many have - Of course saying investment will come at the project level gives reason to believe we are months away from any cash injection or reduced risk.
I wonder how we will be paying the Clifford Chance legal bills?
Did we really need that 1% increase just now -
Https://seekingalpha.com/article/4684251-ganfeng-lithium-staying-neutral-following-recent-investor-briefing
Realistic I suppose at this stage.
Although there's a big gap, Galvez will be a great win for us if it were to happen, this is her stance on the the energy reforms:
https://www.bnamericas.com/en/news/mexicos-xochitl-galvez-vows-to-respect-energy-market-reforms
The reforms were declared unconstitutional in February by the supreme court, however.
“There were people who already had investments, who had already practically complied with all the regulations to connect to the CFE and [the government] simply decided to change the dispatch of energy to fossil sources instead of clean energies, leaving many investors hanging,” Gálvez, representing the opposition PRI-PAN-PRD coalition, said.
"I promise that in my government, the law will be respected. Here, the law will not be the president's way," she said.
Https://mexicobusiness.news/energy/news/amlo-seeks-further-energy-reforms?tag=energy
President Andrés Manuel López Obrador and MORENA are pushing for two significant energy reforms this year, aiming to further diminish the role of private players in the sector and limit the ability to challenge government measures through injunctions.
The first reform, part of the package of 20 constitutional reforms proposed by the president, seeks to prioritize access to electricity as a human right at affordable rates by granting priority to the federal power company CFE over private entities. This initiative faces the challenge of securing the required two-thirds majority in Congress. However, with the upcoming elections in June and a potential shift in legislative composition, there's a possibility of garnering the necessary support.
The second reform, currently under consideration in the Senate, aims to restrict judges from suspending regulations, decrees, and public works through injunctions. MORENA and its allies have sufficient votes to pass this reform, which could significantly limit legal resources against government actions.
Https://latinamericanpost.com/technology/mexico-to-harness-lithium-for-electromobility/
Claudia Sheinbaum, Mexico’s ruling party presidential candidate, announces plans for a new technology developed by the Mexican Petroleum Institute to extract lithium from clay, positioning Mexico as a leader in the global electromobility industry.
In a significant development that could reshape Mexico’s economic and environmental landscape, Claudia Sheinbaum, the presidential candidate from the ruling party, has pledged to advance the country’s role in the global electromobility sector. Speaking in Hermosillo, the capital of Sonora, Sheinbaum detailed plans for the Mexican Petroleum Institute (IMP) to spearhead a groundbreaking initiative to extract lithium from clay—a vital component for electric vehicle (EV) batteries.
“Lithium and copper are strategic resources that play critical roles in producing electric vehicles,” Sheinbaum stated. “While copper extraction is well-established, developing efficient methods for lithium extraction from our unique clay deposits in Sonora is essential for our vision to drive the country forward in electromobility
@Bannor,
“I'll choose to believe you made it up for your own narrative .....”
You can look round that date and as I mentioned (not forgetting I was recollecting 5 years past)
https://www.lse.co.uk/ShareChat.html?ShareTicker=INSP&share=Inspirit-Energy&page=123
And I did say to look around spikes, it seems you were happy to shot from the hip and imply I was lying.