Mexico is sitting on a goldmine of rare earth minerals, including neodymium, europium, lanthanum, and dysprosium. These elements are crucial for producing electric cars, wind turbines, smartphones, computers, and advanced technologies like artificial intelligence and semiconductors. With an estimated 1.7 million tons of reserves, Mexico has the potential to become a global energy leader.
Mexico’s Hidden Treasure
The country’s reserves are spread across several states, including Sonora, Oaxaca, Coahuila, Durango, Hidalgo, and Sinaloa. However, Mexico’s current mining law limits the exploitation of these resources, which can only be done by the state. The country lacks the necessary infrastructure and capital to tap into these reserves.
The global demand for these minerals is rising, driven by the need for clean energy technologies. China currently controls most of the world’s rare earth mineral supply, but the US has experienced the consequences of this dependence during the trade war. As a result, the US has declared these minerals strategic and is seeking new sources.
A New Proposal Takes Shape
A proposed constitutional reform in the Mexican Senate aims to declare silicon and rare earth minerals as strategic national resources, similar to oil and lithium. This initiative would put their exploitation under state control.
Some of the key points of this proposal include:
- Creating a decentralized public body to lead the exploration and industrialization of rare earth minerals
- Allowing partnerships with private companies under conditions that ensure national benefits
- Promoting national industry and reducing technological dependence on foreign countries
By taking control of its rare earth mineral resources, Mexico can become a reliable partner for tech giants and a regional leader in innovation and industrial development. To capitalize on this opportunity, Mexico needs to update its legal framework, attract smart investments, and develop public policies that prioritize its technological future.