Https://www.tribuna.com.mx/sonora/2023/9/26/amlo-arrebata-el-litio-sonorense-los-chinos-gobierno-federal-cancelo-las-concesiones-345993.html
For now little is known and everything has been through the company, since the federal authorities have refused to give their version. What is known is that the case will end up in local courts, since international bodies cannot intervene in the absence of a free trade agreement between nations.
Durazo doing the rounds in Taiwan, no mention of China as was said to be planned earlier this month - could be some friction!
Foxconn?
"Our interest in Foxconn is in establishing semiconductor plants, and also, eventually, factories of some or all the stages of e-mobility," added Durazo, **who is only visiting Taiwan on this overseas trip**
https://www.reuters.com/world/americas/mexico-eyes-us-energy-exports-solar-farm-chip-supply-chain-role-2023-09-26/
Certainly appears to be cap in hand for lithium investment - I'm sure Ganfeng will be amused!
I'm not sure any foreign company would have confidence in dealing with the current Mex gov in Sonora.
Some representatives of Chinese enterprises including Tianjin Lishen Battery and Jeve Battery also joined discussions on investment and cooperation in the new energy field.
Just those two could be massive for Sonora -- DYOR
Tianjin Lishen Battery is one of the earliest lithium battery manufacturers in China, and it provides a range of energy solutions for various applications, such as consumer electronics, power batteries, and ultra capacitors. It has customers in India, Europe, and the United States, including Apple, Foxconn, Daimler, Volkswagen, and Hyundai .
Jeve Battery is a company that specializes in R&D and manufacturing of lithium-ion batteries for new energy vehicles (NEVs) and energy storage systems (ESS). According to its website, Jeve Battery was founded in 2009 with a registered capital of RMB 1.2 Billion and has been an active player in the industry of new energy and green energy solutions. It claims to have installed over 250,000 vehicles, achieved a maximum mileage performance of 400,000 KM for a single vehicle, and covered over 200 cities with its products.
Jeve Battery has also received funding from investors such as Fosun International and China Equity in its Series A and Series B rounds. In August 2022, Jeve Battery announced its capacity expansion strategy and aimed to become one of the top three battery suppliers in China by 2025. It plans to increase its annual production capacity from 5 GWh to 30 GWh by building new factories and upgrading existing ones.
** I think they are looking at 100GWh now**
They won't be heading to Sonora on the back of Ganfeng being ripped off - by the mex gov - IMHO
Possibly this is going ahead, I don't see how they can avoid discussing Ganfeng's situation, it might be that other investment will become conditional on the outcome of Ganfeng's involvement with Sonora?
Worth a repeat:
https://www.seaisi.org/details/23473?type=news-rooms
Mexican officials visited Beijing on 5 September for the Sino-Mexican Business Cooperation Meeting to strengthen the bilateral relationship between the countries. The visiting representatives introduced the perspective of the new energy industry in Mexico and proposed incentive policies to promote NEV collaboration, Kallanish learns from China Industrial Association of Power Sources (CIAPS).
The representatives included Francisco Acuna, chairman of Sustainable Development Committee of Sonora, Mexico, and Sergio Kwiatek, political counsellor of the Mexican Embassy in China. Besides representatives from CIAPS, some representatives of Chinese enterprises including Tianjin Lishen Battery and Jeve Battery also joined discussions on investment and cooperation in the new energy field.
At the meeting, Acuna disclosed that the Mexican federal government will offer up to 3-6 years of investment tax exemption to investors, whilst the state government could provide 10 years of salary tax exemption after individual consideration.
“China is Mexico’s second-largest trading partner in the world. The automobile industry is Mexico’s pillar industry, and China is at the forefront of the world in the development of renewable energy, especially in the fields of NEVs, energy storage and batteries,” adds Acuna. “Mexico pays high attention and hopes the two countries can further strengthen collaborations in these fields as it welcomes Chinese enterprises to invest and construct factories in Mexico.”
****Kwiatek says the governor of Sonora state will visit China later this month to further talk about “related issues.” He did not address the negotiations between Mexico and Ganfeng Lithium, the operator of the Sonora lithium project in northeast Mexico****
The North American government decided to cancel nine lithium mine concessions related to the project following its lithium nationalisation in February. Ganfeng said recently the cancellations aren’t final and that, at this point, it is unclear whether the changes may lead to asset impairment losses and other negative impacts. The company didn’t seem to be involved in this week’s meeting in Beijing.
I wouldn't be discussing that issue if I was him either in the open press.
On May 27, 2023, 43 opposition members of PAN, PRI, PRD, Movimiento Ciudadano and the recently formed Grupo Plural filed an unconstitutionality action against the mining law reforms before the Supreme Court of Justice of the Nation (SCJN). They argued that the reforms violate several articles of the Constitution, such as Article 27, which establishes that concessions can be granted for mineral resources to privates. They also claimed that there were irregularities during the fast-track reform process, as it bypassed specialized commissions that review legislation.
On June 6, 2023, Minister Norma Piña accepted the request presented by the opposition senators and admitted the lawsuit. She fixed a term of 15 business days for both Congress and the President to present a report and send a certified copy of the Mining Law decree’s legislative antecedents, as well as of the Official Gazette where it was published. If the parties do not send the required files, the Court will work with the information it already has. The Supreme Court did not establish a deadline to pass a final judgment. Therefore, it could take around a year to get to a conclusion, as has happened in recent cases related to energy decrees.
Even though lawsuit has been admitted, this does not interfere with the deadline of 90 business days in which President López Obrador must create a state-owned lithium company, as was established in the Mining Law reform. The Court will have to clarify if there were irregularities during the fast-track reform process and if the reform violates any constitutional principles or rights.
In summary, Mexico's mining law reforms are a set of changes that aim to recover state control over mineral resources but have faced strong opposition from various sectors. The Supreme Court has admitted an unconstitutionality action against them but has not issued a final judgment yet. The outcome of this legal dispute could have significant implications for Mexico's mining sector and its future development.
BYD being involved in Sonora does open up the potential for the concessions to come into play in earlier years if we ever get there, but BYD must certainly have strong bargaining power considering there EV battery involvement with Tesla along with there own bus, truck and battery storage.
They are rapidly becoming a recognised global brand and any government with the opportunity to have them invest would be foolish not to embrace it, for those given the chance others are chomping at the bit with Tesla and so no reason to believe BYD are not equally as appealing - IMHO
https://www.bloomberg.com/news/newsletters/2023-09-22/elon-musk-is-in-no-hurry-to-build-more-tesla-car-plants
$10bn additional foreign investment has been announced for Monterrey to support the Tesla plant since the original Tesla figures were stated for one million vehicles.
Plus Ford using BYD batteries in some Chinese produced models, then the CATL Ford US partnership under scrutiny could lead to Ford possibly looking to Mexico for production.
Ganfeng/BYD NA?
Https://theedgemalaysia.com/node/683661
BYD, which stands for “Build Your Own Dreams” and is backed by Berkshire Hathaway Inc, has also been investing in lithium production in Brazil and Chile, the nation with the biggest reserves of lithium. It’s also evaluating options in Mexico.
“BYD is now a leading battery manufacturer, so we need a lot of lithium globally,” said Li.
Li shrugged off concerns that Mexico’s close ties with the US market would hurt BYD.
“In reality we have been to many states in Mexico and the governors welcome us. They really want BYD to invest in their state,” said Li.
Https://www.milenio.com/opinion/jesus-rangel/estira-afloja/litiomx-anulan-concesion-a-ganfeng-2
In that area, there is the company Bacanora Lithium, owned by the Chinese company Ganfeng Lithium, which already received notice last August of the cancellation of nine concessions by the General Directorate of Mines because it did not comply “with its minimum investment obligations as stated. “Mexican legislation requires” between 2017 and 2021.
On August 29, the president of the Chinese company, Li Liangbin , informed its shareholders about this decision and argued that the investment by its subsidiaries “significantly exceeded the minimum investment obligations,” that the cancellation of concessions violates the laws. Mexican laws and international law as “arbitrary and without foundation,” and that he has already filed the appeal for review to “challenge the resolution.” If necessary, it will resort to other resources of Mexican and international law.
Background FYI
Li Liangbin chairs Jiangxi Ganfeng Lithium, a supplier of lithium chloride and other lithium products. Ganfeng is headquartered in China's Jiangxi Province. In 2000, Li bought the factory which became the predecessor business of Ganfeng.
Https://www.bnamericas.com/en/news/mexico-urged-to-boost-mineral-exploration-to-supply-the-energy-transition
CanCham’s Ortega said it is “very regrettable” that the new mining reform reserves mineral exploration for the State through geology bureau SGM, and includes new obligations, causes for the cancellation of concessions and even new mining crimes. However, Ortega, who is a lawyer, believes that the constitutional complaint filed by the chamber of deputies against the mining reform “will triumph” at some point next year, and lead it to collapse.
I suppose we will see EMH news before Sonora, EMH strategic cornerstone offtake in the next two to three months and the DFS in the next three to four months. Unless there's pressure from nearshoring
Not much response to the EG1 Ant survey update? even the HotCcopper BB has no posts, I think a follow up interview with the CEO or another board member would be useful.
highlights
● Final Ambient Noise Tomography (“ANT”) geophysical interpretation received.
● Nine potential pegmatite targets in total have been identified, each characterised
by low seismic velocity anomalies.
● Survey data integration with geochemical data shows surface expression of
anomalies.
● Geochemical sampling and mapping continues at Bynoe in advance of maiden
drill program which awaits conclusion of MMP and AAPA approval process.
● Geophysical and geochemical integration and analysis ongoing.
On 1 August 2022, Core announced “BP33 drilling delivers outstanding results” (Refer:
https://wcsecure.weblink.com.au/pdf/CXO/02548420.pdf) whereby Core utilised Fleet’s ANT
technology over its already drilled world-class BP33 prospect, where the ANT Survey identified the
BP33 pegmatite characterised by a zone of lower velocities.
Previously announced:
ANT A1-1 400m x200m Weathering to 600m NW
ANT A1-2 600m x 300m Weathering to 1,125m NE
This weeks update:
ANT A4-1 500m x 1,500m Weathering to 870m NE
ANT A4-2 1,500m Weathering to 870m NE
ANT A2-1 200m x 100m Weathering to 870m NW
ANT A3-1 800m x 300m Weathering to 660m NW
ANT A3-2 400m x 200m Weathering to 660m NW
ANT A3-3 800m x 600m Weathering to 660m NW
ANT A3-4 400m x 200m Weathering to 660m NW
It's too late, the tech has compelling advantages - I agree @EV_Bull
https://www.reuters.com/business/autos-transportation/more-than-fifth-cars-sold-eu-august-were-full-evs-acea-2023-09-20/
BYD alongside Tesla and more to follow.
How the incumbent stood by while BYD grew into the the giant they are today, not cheaply built cars and leading battery tech:
U8 SUV 621 mile range - 0-60 3 secs, 124 MPH top speed 360 degree turn.
https://www.youtube.com/watch?v=p3DOb7_5SrE
Plus the mass market models look very impressive.
Https://www.ft.com/content/384fe8ff-cdb0-4cfe-a0b9-c4e9919d62a0
And as we were saying!
As prices fall, two thirds of global car sales could be EVs by 2030, study says
https://www.reuters.com/technology/prices-fall-two-thirds-global-car-sales-could-be-evs-by-2030-study-2023-09-14/
Not so long ago!
October 2020
Battery Electric Vehicle Sales to Make Up 31% of Global Market by 2030, Morgan Stanley Says. Why That Isn’t Higher.
https://www.barrons.com/articles/battery-ev-sales-to-make-up-31-of-global-market-by-2030-morgan-stanley-says-why-thats-not-higher-51603119432
July 2020
EVs to make up third of new cars sold globally by 2030:
Deloittehttps://www.spglobal.com/commodityinsights/en/market-insights/latest-news/electric-power/072820-evs-to-make-up-third-of-new-cars-sold-globally-by-2030-deloitte
All unfolding as expected, that's a big jump one third to two thirds, how many more thirds to follow - I will stick with one more for fear of being accused of ramping, definitely not expecting more than three thirds by 2030.
Https://www.bnamericas.com/en/news/mexicos-plan-sonora-to-offer-3-tax-incentives
During his speech, Durazo also said that the Plan Sonora has become a platform that has sparked interest from top economies such as the US and Europe, in addition to other countries.
“The plan was presented in Cairo, in Taiwan, in Japan, in South Korea and we received in Puerto Peñasco 80 diplomatic delegations,” he said.
Also a posted on 12th:
Https://www.seaisi.org/details/23473?type=news-rooms
Ganfeng might be on the agenda later this month:
Sergio Kwiatek, political counsellor of the Mexican Embassy in China
Kwiatek says the governor of Sonora state will visit China later this month to further talk about “related issues.” He did not address the negotiations between Mexico and Ganfeng Lithium, the operator of the Sonora lithium project in northeast Mexico.
Remember there was no subsidies for Tesla to become involved in Sonora lithium and battery manufacturing.
As expected the narcissist is looking for a legacy at any cost:
https://www.bloomberg.com/news/articles/2023-09-14/mexico-s-populist-leader-abandons-austerity-to-investor-chagrin?leadSource=uverify%20wall
Https://planoinformativo.com/947342/litiomx-recibiria-su-primer-presupuesto-en-2024/
L1ti0Mx would receive its first budget in 2024 El Financiero | 09/12/2023 | 17:59
$5.7M funding by next year and no mention of private investment although very ambiguous.
@Zoom56,
lithium the new oil!
https://www.offshore-technology.com/news/chevron-repsol-exploration-mexico/
Chevron, Repsol to quit offshore exploration blocks in Mexico
The two companies secured the offshore oil and gas exploration blocks in the Gulf of Mexico in a tender process.
According to Mexico’s hydrocarbon commission officials, Chevron was granted approval to return an undisclosed deepwater block off the coast of Tabasco, as it considers the area to hold “no favourable prospects”.
Confirming the latest decision, Chevron said it would maintain an office in Mexico. It will also continue to monitor the country’s industry developments.
#####
U.S. energy and power companies, such as Chevron(CVX.N) and Marathon Petroleum (MPC.N), which sought to expand in Mexico, have complained that they have been denied simple permits and applications in decisions that favored state oil company Petroleos Mexicanos (Pemex) and national power utility Comision Federal de ..
#####
https://www.reuters.com/business/energy/biden-administration-moving-escalate-energy-trade-dispute-with-mexico-2023-09-06/#:~:text=U.S.%20energy%20and%20power%20companies,power%20utility%20Comision%20Federal%20de
Sept 6 (Reuters) - President Joe Biden's administration has asked U.S. energy companies to prepare affidavits documenting how Mexico’s protectionist policies disrupted their investments as Washington prepares to escalate a trade dispute with its neighbor, according to three people familiar with the discussions.
https://latam-investor.com/2023/08/spains-faltering-mexican-reconquista/
Mexico looks likely to benefit from nearshoring as international firms attempt to reduce their exposure to China by shifting supply chains elsewhere. Mexico is an obvious nearshoring destination, given its geographical position on the doorstep of the US market and relatively cheap labour costs. Spanish companies are keen to get involved. After all, the two countries also share extensive historical, commercial and cultural ties and speak the same language. Yet recent developments have many Spanish firms, particularly in the energy sector, viewing Mexico with caution.
And a curved ball:
https://www.reuters.com/sustainability/chevron-buys-majority-stake-utah-hydrogen-project-2023-09-12/
HOUSTON, Sept 12 (Reuters) - U.S. oil major Chevron Corp (CVX.N) on Tuesday said it has acquired a majority stake in the world's largest proposed storage facility for hydrogen from renewable energy.
U.S. majors Chevron and Exxon Mobil (XOM.N) are rushing to lower production costs and bring scale to the technology as part of their lower carbon fuel strategy.
** a bit of a mix 'n' match** but I don't believe A_L.O is going to reach September 2024 without being exposed as a deliverer or destroyer!
All this could go against the Morena party re-election